2. A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 – Pwhere P is the price of almonds and Q is the total quantity of almonds. The private totalQ?The production of almondscost for the unregulated market is C50 + 80Q +Q²First, solve for the2creates an externality where the total external cost is E =Pigouvian tax (per unit of output of almonds) that results in the social optimum. Supposethat one company, MegaAlmonds, becomes a monopolist in the production of almonds.What is the optimal tax that should be placed on the almonds in this case?

Here we calculate the following tax and production of the given in formation m so calculation of the…

A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 - ere P is the price of almonds and Q is the total quantity of almonds. The private total Q? The production of almonds 2 t for the unregulated market is C = 50 + 80Q + Q? First, solve for the 2 ates an externality where the total external cost is E = ouvian tax (per unit of output of almonds) that results in the social optimum. Suppose t one company, MegaAlmonds, becomes a monopolist in the production of almonds. at is the optimal tax that should be placed on the almonds in this case?

A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 - ere P is the price of almonds and Q is the total quantity of almonds. The private total Q? The production of almonds 2 t for the unregulated market is C = 50 + 80Q + Q? First, solve for the 2 ates an externality where the total external cost is E = ouvian tax (per unit of output of almonds) that results in the social optimum. Suppose t one company, MegaAlmonds, becomes a monopolist in the production of almonds. at is the optimal tax that should be placed on the almonds in this case?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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