8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost function is C(QA) = 125 + 8QA + 5Qa?, where Qa is leather production per week in thousands of pounds. a) If leather sells for $408 per thousand pounds, how much leather will All-Leather produce? How much profit does All-leather earn? Enjoy is a beverage company located on Lake Michigan near All-Leather in Chicago. Enjoy's production of beverages is negatively affected by water pollution from All-Leather's production of leather. Enjoy's total cost function to produce beverages is C(Qe) = 10QE +3Q:? + 3Q? where Qe is Enjoy's weekly production of beverages, in thousands of gallons and, as above, Qa is All-Leather's weekly production of leather. b) Is this an example of a pecuniary externality or a real externality? Explain. c) What is the extra cost to Enjoy from an additional thousand tons of leather production by All- Leather (i.e., the external marginal cost of an extra unit of Qa produced by All-Leather)?

8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost function is C(QA) = 125 + 8QA + 5Qa?, where Qa is leather production per week in thousands of pounds. a) If leather sells for $408 per thousand pounds, how much leather will All-Leather produce? How much profit does All-leather earn? Enjoy is a beverage company located on Lake Michigan near All-Leather in Chicago. Enjoy's production of beverages is negatively affected by water pollution from All-Leather's production of leather. Enjoy's total cost function to produce beverages is C(Qe) = 10QE +3Q:? + 3Q? where Qe is Enjoy's weekly production of beverages, in thousands of gallons and, as above, Qa is All-Leather's weekly production of leather. b) Is this an example of a pecuniary externality or a real externality? Explain. c) What is the extra cost to Enjoy from an additional thousand tons of leather production by All- Leather (i.e., the external marginal cost of an extra unit of Qa produced by All-Leather)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A negative externality causes Select one: a. the social cost of production to be greater than the private cost. b. the social cost of production to be the same as the private cost. c. None of the answers are correct d. the social cost of production to be less than the private cost.
38. Negative externalities are also called a. positive externalities. b. external benefits. c. external costs.
2 The market for education confers positive externalities on society. Which of the following is an example of a positive externality that it provides? Higher quality of public institutions like government and law Subsidies for providing education Higher salary for the person earning a degree More colleges and universities X OOOO W F2 3 16 80 F3 E 888 FA R DE F % V T MacBook Air 6 Y B & 7 H tv NA 2 N 8 K M 0 W Aa zoom 0
Answer this for me mate. Much appreciated.
1. regulations to limit air pollution (a) identify the market failure
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
When positive externalities are present in the consumption of a good, the marginal social benefit Apabila kesan luaran positif wujud dalam penggunaan sesuatu barang, faedah sosial marginal adalah a. equals the marginal cost of producing the good plus the marginal cost to third parties sama dengan kos marginal untuk menghasilkan barang ditambah kos marginal kepada pihak ketiga b. equals the marginal benefit received by consumers of the good plus the marginal benefit to third parties sama dengan faedah marginal yang diterima oleh pengguna bagi barang tersebut ditambah faedah marginal kepada pihak ketiga c. could be either greater than or less than the marginal benefit received by consumers of the good depending on the equilibrium price determined in competitive markets. lebih atau kurang daripada faedah marginal yang diterima oleh pengguna barangan bergantung pada harga keseimbangan yang ditentukan dalam pasaran persaingan sempurna d. equals the marginal benefit received by consumers of…
Remaining * Question Completion Status: Moving to another question will save this response. Question 12 A private good OA is characterized by rivalry and excludability OB. never produces a positive or negative externality OC is available to all and cannot be denied to anyone A Moving to another question will save this response. 80 Q F2 F3 F4 F5 F6 2$ & 2 4 W E Y CO #3
Question 23/26 Multiple Select: Select all of the following that might be a negative consequence of using public goods. A Positive Ekternalities Free Riders Not having to pay any money for them Negative Externalities DELL -> $ & 3 6. 7 8. W e r t y u W #
Explain the "Externalities theory" in general Explain the concept of "social marginal cost" Give one clear example of production externality and its influence on the "social marginal cost".
No chatgpt answer
#18