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- Suppose the graph below shows Gilligan's daily production possibilities curve for coconuts and fish. Which points on the graph are efficient? Coconuts (lbs/day) 8 7 6 0 0 O Multiple Choice O O O 1 2 3 4 5 Point A A Fish (lbs/day) Point B C Point C B Both points A and B 615Refer to the below competitive market diagram for product Z. Assume that the current market demand and supply curves fo substantial positive externalities associated with the production of Z, it can be argued that: B 0 Multiple Choice O SA G 52 D₁ D2 an output smaller than G would improve resource allocation. an output greater than G would result in a more efficient allocation of resources. government should levy a per unit excise tax on Z to shift the demand curve toward D₁. Prov 18 of 53 Next
- 2. General Equilibrium Consider a market with two goods, x and z, and two consumers, A and B. The utility functions for consumers A and B are as follows UA ÜB 2 1 == XBZB and the initial endowments for each consumer are @ eA = (4,2) еB = (2,6) where consumer B is endowed with 2 unit of good x and 6 units of good z, respectively. a) Draw the Edgeworth Box (Don't worry about the shape of the utility curves. Just pick a general shape that we have used before). b) Derive the contract curve.Consider a buyer and a seller meeting to exchange a product. The seller has a minimum willing to sell ( WTS) of $20.00, while the buyer has a maximum willingness to pay ( WTP) of $65.00. If they agree on the price ( P) of $33.40, then the producer surplus is $_ P WTS WTP 10 20 30 40 50 60 70 80 90 O A. 13.40 O B. 22.90 O C. 22.40 O D. 22.15Suppose the equation for the demand curve in a market is P=100 – 2Q. Also, suppose the equation for the supply curve in the same market is P=10+3Q. Suppose there is an external cost of $20 associated with the production of each unit of the good. The socially optimal quantity is O 4 units smaller than the market equilibrium quantity. O 22 units greater than the market equilibrium quantity O 14 units smaller than the market equilibrium quantity O 4 units greater than the market equilibrium quantity.
- Please help with #1ADVANCED ANALYSIS Assume the following values for the diagrams below: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38 per bag. The price at point f is $74 per bag. The price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ What is the dollar value of the consumer surplus at that output level? $ b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? $ c.What is the dollar value of the deadweight loss when output level Q3 is produced? $ What is…! i need 'b' part
- 3 2 - 2 0 - 3 3 If A = - 3 1 -2 - 2 and AB = C = [C], find C32. B = 4 - 3 0 4 4 4 2 -2 Select the correct choice below and, if necessary, fill in the answer box to complete your choice. O A. C32 = (Simplify your answer.) O B. C32 is not defined because the product AB = C is not defined.Refer to the figure below. Producer surplus is: 18 16 14 12 10 8 642 O $420 O $60 O $180 O 120 O $12 S₁ D₁ 5 10 15 20 25 30 35 40 457 my brother and I go out to dinner. There are two items on the menu – hamburgers ($7.5) and steak ($25). My brother and I each get $10 of enjoyment from hamburgers and $20 of enjoyment from steak. · What are the Nash equilibrium strategies/orders if we each pay for our own meal? · What are the Nash equilibrium strategies/orders if we split the final bill?