suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A is a competitive firm and faces an equilibrium price of £12 for its product. The cost function of firm A is Ca (q,x) = q^2 + (x - 4)^2. Firm B is a competitive firm and faces an equilibrium price of £10. Firm B’s cost function is Cb (r,x) = r^2 + xr. a. Discuss other methods the government can use to restore the social optimum. Discuss advantages and disadvantages of the methods you propose. Explain.

Q: In the specific factors model, labour is defined as a as a specific factor. a. variable factor;…

A: Specific factor model determines how different factors of production are used in different…

Q: The cartel of copper exporting countries is called COPEC. As part of an international trade…

A: Marginal revenue means to the change in total revenue resulting from producing one additional unit…

Q: Engr. Gundran wishes his son to receive 11,150 10 years from now. What amount should he invest if it…

A: Formula for the present value is given as P = F(1+r/n)t*nP : present value F : Future valuen :…

Q: The table below shows revenue data for different firms producing dishwashers. Use the given…

A: Market share is the sale of one company divided by total sales and then multiplied by 100  So ,…

Q: Which of the following statements is/are true? 1. In Wakanda, nominal GDP equals 24 000 Wakandan…

A: Money is a vital component in modern economies, serving as an instrument of value, an item of…

Q: The table below shows revenue data for different firms producing tablets. Use the given information…

A: 1. Here, total market revenue is: =$535+$260+$670+$175+$320 =$1960 Therefore, market share of each…

Q: g) How many firms are in the industry in the short-run?

A: The two basic economic concepts that affect business decisions and results are production and cost.…

Q: Assume that payoffs are received at the time a pricing decision is made, so the first-period payoff…

A: The game theory in economics involves two or more person competing or coordinating with each other…

Q: 2. (a) A monopolist has discovered that the inverse demand function of a person with income Y for…

A: Monopoly is a market structure where there is only a single seller or firm. Since, there are ni…

Q: The largest few firms in the market for desks are listed below, along with their Market Share. What…

A: 4 firm concentration ratio is calculated as the sum of market share of all the big 4 firms divided…

Q: Milkwood Land's real GDP in 2022 was R60 000. The relevant money-demand curve was the one labelled…

A: According to the quantity theory of money: MV = PY Where M is the money supply. V is the velocity of…

Q: QUESTION 30 Price, cost marginal revenue of diamond $1,000 800 600 400 200 --200 -400 8 10 MR MC 16…

A: In a monopoly, demand curve and marginal revenue curve are downward sloping. Marginal revenue lies…

Q: Under-capitalization of a business entity causes: a) a situation when current assets are financed…

A: Under-capitalization can have several unfortunate results for a business element. For instance, it…

Q: 14. The figure below presents information for a one-shot game. Firms B (8.10) What are dominant…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: 2. A single firm monopolizes the entire market for Batman masks and can produce at constant average…

A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…

Q: A monopolist has discovered that the inverse demand function of a person with income Y for the…

A: Given Demand function: P=0.002Y-Q        .... (1) Cost function: C(Q)=100Q                  .... (2)…

Q: The makers of Jazzy Cola have come to you for advice. Two of the inputs to their production process,…

A: Substitutes, in the context of economics and consumer behavior, are goods or services that can be…

Q: What is the equivalent nominal rate of interest of 0.122% compounded quarterly if converted monthly?

A: Given: Interest Rate per period (r): 0.122% Compounding per period (m) = 4 New Compounding per…

Q: To prevent firms from participating in predatory practices, governments have established: OTrust…

A: Predatory practices refer to the actions of a dominant company in a market that use anti-competitive…

Q: a. Neither the U.S. nor the U.K. O b. The U.S. but not the U.K. O c. The U.S. and the U.K. TTTT

A: The net flow of money a nation invests overseas during a specific time frame (often a year) is known…

Q: 1 USD was trading for 114 Japanese yens on December 9, 2021, and then the value of USD increased to…

A: The value of one currency in terms of another currency is termed its 'exchange rate'. It depicts the…

Q: Identify whether the following schenarios describe positive A. Positive Externalities B. Neither C.…

A: Externality occurs when actions of one party affects the well being of other. It leads to external…

Q: Explain the ways in which trends within Medicare, Medicaid, and third-party payers affect working…

A: Medicare's transition to value-based care is the biggest change in healthcare reimbursement…

Q: A truck was purchased four years ago for $65,000 to move raw materials and finished goods between a…

A: MARR=10% Defender sold at 0 year=$40000 The initial cost of challenger=68000

Q: = Cost of precaution, x ■ Accident harms, A(x) = 100 - x ■ Accident occurs with probability, p(x) =…

A: Under the economic model of tort law, the goal of tort law is to deter potential tortfeasors from…

Q: A tax system in which average tax rates fall as income rises is a _____ tax system; the way in which…

A: A tax system is called regressive in which individual with lower income pays a larger percentage of…

Q: State the condition for the Pareto optimal provision of a public good. Interpret the condition.

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first question for you. If…

Q: The following equation represents the effects of tax revenue mix on subsequent employment growth…

A: The given model is: growth=β0+β1sharep+β2share1+β3shares+other factors

Q: A firm sells its output in a perfectly competitive market and hires two inputs, capital and labor,…

A: Product Price = $15 per unit Wage = $75 per day  Marginal Product of Capital = 3

Q: One way in which the Heckscher-Ohlin model differs from the Ricardian model of comparative advantage…

A: As a result of the fact that trade is essential for a nation's economic growth, many economists…

Q: The inverse demand curves for two markets are, respectively, p = 10 – 2q and p = 20 – 3q. The…

A: Assuming every other factor is the same, the amount that's demanded (effectively) of a commodity or…

Q: Assume a Hawk -Dove game with the following payoff matrix, where the first entry is Animal A's…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: 24. The table below presents the number of workers it takes to produce 10 Headphones and 10 Tablets…

A: Comparative advantage refers to the ability of the country to produce the good at a lower…

Q: What is the equivalent nominal rate of interest of 0.122% compounded quarterly if converted monthly?

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: How much should I invest today and expect a reimbursement every other month with a rate of 8.0%…

A: PMT = P3,333 monthly Time (n) = 4 years or 48 months Interest rate = 8.0% compounded bi-monthly PV =…

Q: Conduits made of Timber First Cost Estimated Life Scrap Value Annual Maintenance Interest What is…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: 1) Complete the table, showing the Marginal Utility for each hamburger and ice cream. (for example,…

A: Marginal utility is the additional utility that a consumer derived from consuming one more unit of…

Q: Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser with…

A: The Von Neumann-Morgenstern (VNM) utility index is an index that measures an individual's preference…

Q: explain the possible impact of the higher wages on the output level, total cost of production and…

A: The period of time in which a firm can change its inputs is referred to as long run and short run.…

Q: Assuming no government intervention in this market; what would be the equilibrium price? S If the…

A: A monopoly is a form of imperfect competition where there is a single supplier and numerous buyers.…

Q: UK monetary policy framework

A: Promoting a stable and flourishing economy requires a solid monetary policy framework. It offers a…

Q: h) Show your solution graphically using one graph for the market and one graph for the…

A: There are many businesses producing the same items in a completely competitive constant cost…

Q: If a firm triples inputs and produces twice the output, then there are constant returns to scale.…

A: Return to scale is a long-run concept that states the proportional change in output due to a…

Q: 6. Plotting the supply of labor In Lexington, 90 people are willing to spend an hour working as…

A: Labor supply curve is upward sloping shows direct relationship between wage and quantity of labor…

Q: of long-distance calls to New York, the rental fee, and $3 for each airtime minute, was $160. (a)…

A: Total cost, which includes both fixed and variable expenses, is the word used to refer to the total…

Q: Boston Chicago ng table socks. socks. Pairs of Red Socks per Worker per Hour Pairs of White Socks…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first three questions for…

Q: Consumers know that some fraction x of all new cars produced and sold in the market are defective.…

A: The situation where the buyers and sellers of a product do not possess complete information…

Q: In most economic sectors waste is oversupplied. Explain why this is the case and critically discuss…

A: A cost endured by someone else or society in its entirety as a consequence of economic activity or…

Q: The demand and supply functions in the market  for Dentemprika yam are given as: Q =300-50P and…

A: The equilibrium is attained where the demand and supply forces are equal. Following are the given…

Q: Suppose in India, a minimum wage is instituted in the urban sector above the market clearing wage,…

A: The implementation of an MW in the urban sector above the market-clearing wage is likely to increase…