Answered: Finding an Efficient Solution, Supply:…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A chemical company can produce Q units of a chemical H, with marginal costs of MC = 9 + Q, and can distribute the chemical at marketing marginal costs of MC = 1. The demand for H is given by P = 30 - 1.5Q. If an external market exists where H can be bought or sold without marketing expenses for $13, how much H should the firm produce? 4 units 10 units 7 units 5 units 0 units
MB = 50 - 2A MC = A Draw a graph for conducting a benefit cost analysis using marginal analysis. Solve for the efficient level of abatement and calculate the net benefits. Solve for the deadweight loss present at A = 10.
Price $400 $320 $120 $2000 $3000 $4000 300 350 $6000 Marginal Social Cost Supply = MPC What is the dead weight loss at the market outcome? Demand = MB -MEC = $120 Thousands of Board Feet
A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs
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Suppose demand is QD=9−P and supply is QS=P. There is a constant positive externality of $4 per unit (marginal external benefit, MEB = $4). Find the market equilibrium quantity and the socially optimal quantity. The market equilibrium quantity is enter your response here. (Round your answer to one decimal place.) The socially optimal quantity is enter your response here. (Round your answer to one decimal place.)
Production Costs inflicted upon a third party are negative externalities. These can be corrected b Enacting legislation or regulation Targeting specific products for taxation both neither
Large taxes on energy companies whose production activities cause environmental damage. How does this negative externality affect the allocation of resources? List three things. Include pigovian taxes and marginal costs.
Consider a lake found in the town of Center Barnstead, and then answer the questions that follow. The town has a campground whose visitors use the lake for recreation. The town also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the campground's economic profit. Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the campground would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $1,500 per week, and the campground's economic profit is $1,800 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $2,000 per week, and the campground's economic profit is $1,000 per week. These figures are summarized…
3) A chemical company can produce Q units of a chemical H, with marginal costs of MC = 9 + Q. and can distribute the chemical at marketing marginal costs of MC = 1. The demand for His given by P = 30-1.5Q. If an external market exists where H can be bought or sold without marketing expenses for $13, how much H should the firm produce? 00 units 4 units 05 units 07 units 10 units
Please do all parts
See attached image for marginal abatement cost table and question

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Finding an Efficient Solution, Supply: P = 10.0 + 0.1Q; Demand: P = 50.0 − 0.125Q. Let Marginal External Cost (MEC) = 0.05Q. Solve for Q and P