An industry has the following cost function: C(X, Y ) = 1500+20X +20Y . Market demands for the 2 goods are given by PX =80−X, and PY =140−2Y Suppose the government wished to use two part tariffs in these markets, and suppose further that two part tariffs are feasible. Imagine that there are 10 consumer in each market. Solve for a set of two part tariffs (one for each martket) that pay the firm zero profits in total, yet achieves efficiency

Q: Consider two identical countries (H and F) with the same individual firm's inverse demand function:…

A: The objective of the question is to solve the profit function for firms with marginal production…

Q: Imagine a firm with a marginal abatement cost ( MAC) function equal to: MAC = 70 - 10E. The…

A: Marginal abatement costs that are being used for decreasing an additional pollution unit. The policy…

Q: The demand curve for tea is Q = 250 – 10P in Canada. Q is quantity in millions of pounds and P is…

A: Tariff is a tax that is often levied on the purchase of foreign made commodities and services. It…

Q: domestic supply and demand of rice is given by the following equations: QD=200–10p QS=20p–100 The…

A: (Q) The domestic supply and demand of rice is given by the following…

Q: 1. Assume two countries, the U.S (US) and Japan (J), have one good: cars. The demand (d) and supply…

A: Without trade, at the equilibrium, the demand and supply of cars in both countries Japan and the…

Q: The Australian Government believes that maintaining a viable airline industry is essential to the…

A: We know at equilibrium the market demand equals the market supply. Which means that:…

Q: ouse/business!)

A: Given : Current water price for Canadian consumers = $40/tonne Consumption=3 m tonnes/yr World price…

Q: Consider a single country and a single good. The demand curve for this good is given by QD = 144 -…

A: We know that the consumer surplus is the difference between the actual pay for a particular product…

Q: Consider the following demand curve for good X which is produced by Firm 1 and 2: Price=100-2*0₁-2₂…

A: We have two firms with same demand and different cost functions.

Q: The demand for a monopolist's two products are determined by the following set of equations…

A: Answer -

Q: Suppose there are 100 farmers each with 10 acres that overlie a common groundwater aquifer. They all…

A: The total productivity is the total good produced by the given inputs. Average productivity refers…

Q: Problem 2: Yellow croakers Every day, two fish farms, A and B, bring their fresh yellow croakers to…

A: The following case is the case of two firms in an oligopoly market.  Two firms: Firm A (producing…

Q: Dunder Mifflin sells specialty paper to commercial clients in the Scranton area. Some of Dunder…

A: A monopoly is a single seller in the market which sets the price of its good and thus, is a price…

Q: Given below are the demand and supply functions for three interdependent commodities.…

A: For goods market 1:   Qd1 = 90 – 2P1 + 3P2 – 5P3     Qs1 = P1 – 10 In equilibrium, Qd1=Qs1,…

Q: "Vitamin Strong" has the geographically separated markets, denoted A and B. The demand on these two…

A: Given that, QA = 1-PA QB = 0.5 - PB

Q: The quantity of a product demanded by consumers is a function of its price. The quantity of one…

A: The quantity demanded of two commodities is given as

Q: Suppose that you produce an award winning yogurt that you sell at a farmer's market. It is produced…

A: Consumer surplus: - it is the difference between a consumer’s willingness to pay and the price he…

Q: Consider the market for wheat where demand is given by: Q=80-4p and supply is given by: Qs = 40 +…

A: Given information Demand function Qd=80-4P Supply function Qs=40+4P Equilibrium quantity and price…

Q: Suppose that you are the vice president of operations of a manufacturing firm that sells an…

A: At equilibrium, quantity supply matches with its demand.

Q: In October 2018 Canada agree to open the dairy market to US producers as part of the new NAFTA…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Suppose Lou's demand for good X is given by XL =74 - P/6 and Dora's demand for good X is given by XD…

A: Aggregate demand is the total demand for goods and services in an economy at a given time and at a…

Q: The highway has a supply function of: t2=292 And the local road has a supply function of: t1=4+q1…

A: The transportation problems are the mathematical models of linear programming which considers the…

Q: Consider the following demand of tourists (T) and locals (L) for spots in a race: SQ" = 1,700 – 5p…

A:

Q: 5) The domestic supply function in a market is given by Q = 2p0.5. Without tariff, the market upply…

A: Solution: Option A)10  is Correct Given Data: Supply function (Q)= 2p^0.5 Market supply (p) = 25…

Q: The market for concession tickets (C)! Consider the following simplified scenario. Imagine that the…

A: The demand function depicts the relationship between the price and quantity demanded. The slope of…