it View Historys for Business - Goog Xs.uts.edu.au/courses/25533/quizzes/59436/takePrice ofhigh emissionsvehiclesArticle Link: https://bit.ly/3fbNtrFThe following graph represents the market for high-emissions cars. Answer this question assumingthat the externality is not internalised.O P1O P2OP3PHP3P₂O P4P₁Bookmarks Profiles Tab Window Help0Question 81Price ofhigh emissionsvehiclesQuiz: Microeconomics News A X +d₁What is the private value of the last unit traded (or the willingness to pay of the marginal buyer) inthe market?Q₂ Q3JANQ4SSocialValueQuantity of highemissions vehiclesArticle Link: https://bit.ly/3fbNtrFThe following graph represents the market for high-emissions cars. Answer this question assumingthat the externality is not internalised.2 ptsS

Marginal buyer is the one who is willing to pay the equilibrium price and will leave the market if…

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Article Link: https://bit.ly/3fbNtrF The following graph represents the market for high-emissions cars. Answer this question assuming that the outernalinin

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the following table shows the price of a base model for a particular brand of hybrid and the quantity of these hybrids sold for three years. Do these data indicate that the demand curve for these hybrids is upward sloping? Explain. Year 2015 2016 2017 Price $25,190 24,520 24,930 Quantity 36,466 33,250 35,265 A. No, the demand curve is downward sloping. The demand curve appears to be upward sloping because it is more likely that the demand curves shift between years and the data here are collected from three different data points. B. Yes, the demand curve is upward sloping because, from year to year, when the price increases, the quantity also increases. OC. Yes, the demand curve is upward sloping because the price increases each year. O D. No, the demand curve is downward sloping. The demand curve appears to be upward sloping because the data show that the price decreases as the years progress.
Ilia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side of the street and a Shell station on the other side of the street. Although run by different companies, the two stations sell gasoline at the same price. a. The most likely reason that the price is the same is that _gas stations always make a profit, so they can charge any price they want. _drivers need gas and are willing to pay whatever price a gas station charges. _government regulation requires both gas stations to charge the same price. _consumers view gasoline from different gas stations as perfect substitutes. b. If one station increases its price, _it will be fined by the government. _it will sell more gasoline. _it will make a higher profit. _it will lose customers to the cheaper station across the street.
What are the necessary conditions for economic efficiency? In what 4 situations might a market fail to achieve ideal economic efficiency?
500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire Price
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ADJ Enterprises produces hydrothermocorticoids. The table below shows the costs of producing various quantities of hydrothermocorticoids. Quantity Total Cost Average Cost 0 $0 -- 1 $10 $10.00 2 $12 $6.00 3 $15 $5.00 4 $19 $4.75 5 $24 $4.80 6 $30 $5.00 7 $45 $6.43 ADJ sells its hydrothermocorticoids for $5 each (that is the price regardless of the number of hydrothermocorticoids it sells). Use the Profit-Maximizing Rule to explain the quantity that ADJ should produce to maximize its profits. You may use a calculator. You should explain the details of any calculation you perform. You should identify, explain, and apply the concept you use to answer this question. To receive full credit, your explanation must show all steps in any calculations you perform. Your explanation must also incorporate the profit-maximizing rule – state what that rule is and explain how it applies to ADJ’s situation. Note that it is…
4. A model of network externalities. Suppose that there are 50 potential consumers in the market for a new technology that exhibits network effects. There is a uniform distribution of consumers with individual valuations, v, ranging from S1, $2,.., S50. Consumer valuation from consuming the technology is given by vN, where N is the number of consumers adopting the technology. Consumers with purchase the product as long as their valuation is greater or equal to the price, so that the marginal consumer has a valuation such that p3vN. The number of consumers adopting the technology is given by the number of people with valuation greater than y, i.e. N = 50 - v. %3D a) Using the information above, derive the relationship between the price of the product and the number of consumers adopting the product, N. Characterize this relationship – does it reflect a typical market demand curve? b) If the price for the product is $600, find the three equilibrium number of adopters in the market. c)…
Two firms each currently dump 20 tons of pollution a piece into a local river. The government wants to reduce the amount of pollution in the river so they issue 5 permits to each firm. The cost for firm A to reduce their pollution by 1 ton is $1000 and the cost for firm B to reduce their pollution by 1 ton is $800. When answering the questions below simply enter the number for your answer do not write a full sentence. Question 1 If trade is NOT allowed what will be the cost of reducing pollution will be for firm A. total. for firm B, and in
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Global warming is mainly caused by Greenhouse gas (GHG) (i.e., CO2) emission. Aiming to be carbon neutral by 2060, China starts penalizing the polluting firms by introducing a specific tax to those firms. (Source: https://www.nature.com/articles/d41586-020-02927-9)Suppose you are the owner of a profit-maximizing firm in China that produces goods with carbon emission. The specific tax (with tax rate t) is imposed in proportion to the quantity of your firm’s output (q). The market of your firm’s product is assumed to be perfectly competitive. Assume there is no fixed cost: use a fully labelled diagram to show the effect of the tax on the cost curves, and briefly discuss the movement of the curves. (10 marks) Suppose China government decides to raise the tax rate. Discuss the impact of the rise on your firm's output level with economic models wherever necessary. (20 marks)
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