a. what is the profit maximizing quantity of the good for The industry (Q1) when it is not forced to consider the externality? The profit-maximizing quanity for the industry (Q1) is: b. what is the profit maximizing quantity for the representative individual firm (q1)?

Q: The market for cleansers in China is perfectly competitive. Market demand is the usual downward…

A: In a perfectly competitive market, there are large number of sellers selling identical product. The…

Q: b. Draw a graph of the market, showing the equilibrium point. Let's say demand changes in the…

A: In a competitive market, equilibrium is obtained at the point where demand equals supply.

Q: d. In the end, how much would each firm produce in the competition? In other words, find the Nash…

A: Equilibrium in a perfectly competitive industry achieves where the market demand curve and market…

Q: Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean…

A: Since the question you have posted has multiple parts, we will answer the first three parts for you.…

Q: 1. Consider a competitive market where daily supply and demand are QP(P) = 15 -; and Q°(P) = 2P,…

A: Elasticity measures the responsiveness of quantity to change in price level. Equilibrium occurs…

Q: The terms spillover or externality refer to__ A) black-market economic activity. B) the impact on…

A: The phenomena in which one party's activities have unexpected effects for a third party who is not…

Q: A)  Using demand and supply diagram, describe and discuss positive externality in production of a…

A: Prices in efficient markets represent all available information about a certain stock or industry at…

Q: c) Using a supply and demand diagram, demonstrate how a positive externality leads to market…

A: Externalities are costs or gains that a producer makes but does not endure or get directly from…

Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…

A: Negative externalities are negative side effects of economic activities that are not captured by the…

Q: Answer the following questions for the given example: Using water pumps in homes (a) Does an…

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…

Q: Consider a market where the demand and supply for the good are described by the following equations:…

A: Total surplus is the sum of consumer and producer surplus , here we calculate total surplus and…

Q: What is true with market failure?  A. the market becomes more efficient in allocating the resources…

A: Market failure occurs when market fails to produce socially efficient level of output.

Q: Suppose that elk hunting permits are sold in a competitive market by landowners who own property…

A:

Q: 14.)Beekeepers' demand curve for beehives is PD = 36 – Qº. The supply curve for beehives is given by…

A: Answer (4):  The demand curve shows the private marginal benefit curve. If there is an external…

Q: Switzerland has over 500 watch manufacturers. Most of them are quite small and they cluster around…

A: External economies of scale is a situation where per unit cost of production falls as a result of…

Q: The market for plasticans is perfectly competitive. Market Supply is given by Q=2P and Market Demand…

A: Perfect competitive market where large numbers of buyers and sellers exchange homogeneous product.…

Q: A) Using demand and supply diagram, describe and discuss positive externality in production of a…

A: Positive externality of production refers to a case where the third party enjoys the spillover…

Q: Exercise A.4 The demand in a market is given by Q = 10 – 0.1P. Production costs are given by C (Q)…

A: Economic efficiency refers to the optimal allocation of resources that maximizes the manufacturing…

Q: Question 8. In the absence of externalities, allocative efficiency is achieved at the Q where TR =…

A:

Q: 7. (a) What is the First theorem of Welfare Economic. (b) In what sense does it relate to Adam…

A: Externalities occur when any economic activity impacts a third party as a consequence of that…

Q: Question 34 An externality O is a source of market failure O causes markets to allocate resources…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: Consider the education market of a country which is perfectly competitive. The demand equation for…

A: Externalities are the costs and benefits that are derived from an economic transaction by a third…

Q: competitive equilibrium

A: A Competitive market refers to a marketplace structure in which there are many buyers and dealers,…

Q: Which one of these elements of the total cost of a product are not generally taken into account,…

A: An externality is a cost or benefit of an economic activity that is not reflected in the market…

Q: A fertilizer plant emits a very foul odour during the production process. If the government forces…

A: A negative externality refers to the externality that exists when the production or consumption of…

Q: 2. Consider a pharmaceutical company considering research and development of a new drug. They…

A: Socially optimum output is the optimal distribution of resources in society, taking into account all…

Q: c i) Discuss the limitations of the Coasian approach to externalities 4cii) Discuss the strengths…

A: The approach of Coasian to externalities is an economic theory which is formulated by Ronald Coase…

Q: In the article Examine the following market failures: public good, asymmetric information, positive…

A: Market failure : Market failure can be arises due to the over exploitation of resources or even due…

Q: An externality arises when a firm or person engages in an activity that affects the wellbeing of a…

A: When the manufacturing or consumption of a product results in a cost being incurred by a third…

Q: Describe why competitive market can be failed due to the presence of the public goods.

A: In a market, public good refers to the goods that are generally offered by the government as these…

Q: Principle #1: People (Including Individuals and Society As a Whole) Face Tradeoffs Principle #2: The…

A: Externality is a situation where a person/economic agent is affected by the consumption of a…

Q: There are three demanders of a public good. Their demands are given by: P₁ = 60-Q P₂ = 100 - Q P3=…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Table 3 given in the following page describes the long run cost schedules for a typical firm in a…

A: ATC in economics is the average total cost, it is the average of total cost incurred in the process…

Q: 1.Suppose that elk hunting permits are sold in a competitive market by landowners who own property…

A: Given: P = 180 -0.5q C(q) = 0.125q2   Required: Graphs for the scenario.

Q: In markets with strong network externalities:     a. It is common for the market to be split…

A: Network externality refers to the situation when demand for a product is influenced by the demand…

Q: a) Explain the difference between a positive externality and a negative externality and why each…

A: Part A An externality is a cost or benefit incurred or received by a producer that is not paid for.…

Q: Consider a competitive market in which the PM = 180 - 2q and the SMC = q. In this market, however,…

A: Consumption is an activity in which institutional units use up goods or services; consumption can be…

Q: Consider a competitive equilibrium with positive production externalities. In this econ- omy output…

A: In a market, when there is positive externality, it implies that the marginal social benefit exceeds…

Q: (A) Suppose that the two firms merge. Write down the profit function of the merged firm. Calculate…

A: The purpose of this question is to show an alternative scenario in which the government prohibits…

Q: A utility company is closely monitoring a new set of federal guidelines recently passed by the EPA…

A: Technological environment refers to the state of the science and technology in the country and…

Q: Assume a perfectly competitive market with no externalities. The demand curve is P =52 - 0.06×Qd.…

A: Total Surplus A market's overall surplus serves as a gauge of the general well-being of all members.…