Suppose the supply curve of motorized scooter rentals in Golden Gate Park is given by:P = 5 + 0.1Q,where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for motorizedscooters is:P=20 -0.2Q.If each motorized scooter imposes $2.10 per day in noise costs on others, by how much will the equilibrium number of motorizedscooters rented exceed the socially optimal number?units (in hundreds).

Find the Equilibrium Price and Quantity:Set the supply (P) equal to the demand (P) to find the…

Answered: Suppose the supply curve of motorized…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Similar questions

Please answer correctly and only typed answer
Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 32 - 4E. The government offers a $8 per-unit subsidy for abatement. In principle, the firm could ignore the subsidy and continue to emit as many emissions as it was in the absence of government intervention, but there is money to be made from cutting back its emissions. Compared to ignoring the subsidy, how much money could a cost-minimizing firm save or make by cutting back its emissions? (Hint: remember that firms trade off the benefits of the subsidy with the costs of abatement when deciding how much to abate) Answer:
Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P = 5 + 0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for portable radios is: P=20-0.2Q. If each portable radio imposes $3.60 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number? units (in hundreds).
Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 30 – 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 15 – E. With a tax on emissions of $6, the benefits of adopting the new technologies are $_ Answer:
Suppose that a chemical manufacturing plant is releasing nitrogen oxides into the air, and these emissions are associated with health and ecological damages. Economists have estimated the following marginal costs and benefits for the chemical market, where Q is monthly output in thousands of pounds and P is price per pound. MSB = 50 – 0.4Q; MSC = 2 + 0.4Q; MEB = 0; MEC = 0.2Q. Find the dollar value of a product charge that would achieve an efficient solution.
A study finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every lawn mower. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market price for basic push mowers rises to $208. Because of the tax, the number of basic push mowers sold will .The socially optimal price of basic push mowers is $ .The private market price is $ .A firm selling basic push mowers receives $ after it pays the tax.
The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer. a) What would be the efficient number of concerts to produce if the marginal cost of production were $425 instead of $1,000? b) Suppose the marginal cost of producing rock concerts is only $250 per concert no matter how many are produced. Use the data to calculate the efficient number of concerts. c) If a Lindahl scheme is used to finance the concerts, what prices of admission should be charged to John, Loren, and Mary?
The forge produces iron (x) with the cost function C (x) = 31x², while it can sell the iron at the competitive price $19. The farmer produces apples (y) with the cost function C, (x, y) = 4y? + 2xy, while it can sell the apples at the competitive price $14. If the government wants to tax the forge to incentivize it to produce the socially optimal amount, how much should the government tax the forge per unit of iron produced? Round your answer to 2 decimal points. Answer:
Suppose the demand for standard sized bottled water in the US is Qd=120-30.5P where Qd is monthly quantity demanded in millions and P is the price per bottle in dollars and cents. If the marginal private cost (MPC) of producing the bottled water is one dollar, calculate the market equilibrium quantity. Explain what a constant marginal cost implies. Does that mean the total opportunity cost of producing bottled water is unrelated to how many are produced? Let’s assume that the marginal private benefit (MPB) of bottled water equals the marginal social benefit (MSB). Explain what that means. At the equilibrium calculated in part A, what do you know about buyers’ willingness to pay in each transaction?
Imagine a firm with a marginal abatement cost ( MAC) function equal to: MAC = 70 - 10E. The government introduces a cap-and-trade policy and grandfathers the firm 5 permits initially. Assuming the market price of permits is $10, the firm will spend a total of $___ in order to buy permits. (Note: your answer can be positive or negative; if it is positive, the firm buys permits and your answer represents the firm's total expenditures on permits; if it is negative, the firm sells permits and your answer represents the firm's total revenues from selling permits).
1
Scenario DC street band, Spread Love, plays regularly on the corner of 15th St. and New York Ave, situated nicely in the heart of DC’s tourist district, near Lafayette Square and the White House. Employees in the nearby offices complain that the band is a nuisance and the noise distracts them from their work. Some offices and conference rooms in the buildings have been rendered unusable due to the noise. Employees have been forced to work wearing headphones or have brought in white-noise machines to drown out the music. The nearby law firm contacted the Secret Service and the DC police. However, the police determined that the band’s performances were legal. Question Are the street musicians imposing a negative or positive externality on the law firm and other employees in the area? To people and tourists walking by? To any other group not mentioned here? Economic theory suggests that in a private market, public goods will be under-produced. Does street music satisfy the characteristics…

SEE MORE QUESTIONS

Recommended textbooks for you

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

SEE MORE TEXTBOOKS