There are two consumers of mosquito abatement, a public good.Dash's benefit from mosquito abatement is given by MB D = 100 -Q, where Q is the quantity of mosquito abatement. Lilly's benefit isgiven by MBL = 60 - Q.a. Calculate the total marginal benefit,MBT. b. Suppose that mosquito abatement can be provided at amarginal cost of MC = 2Q. Find the optimal level of mosquitoabatement. c. How much benefit do Dash and Lilly enjoy at theoptimal level of mosquito abatement? (Assume Dash and Lilly do nothave to bear any of the cost personally, but that abatement isprovided by the government at no direct cost to the recipient.)

The objective of the question is to calculate the total marginal benefit of mosquito abatement for…

Answered: There are two consumers of mosquito…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two firms are ordered by the federal government to reduce their pollution levels. Firm A’s marginal costs associated with pollution reduction are MC = 150 + 3Q. Firm B’s marginal costs associated with pollution reduction is MC = 9Q. The marginal benefit of pollution reduction is MB = 250-4Q. A.What is the socially optimal level of each firm’s pollution reduction? B. Compare the social efficiency of three possible outcomes: Require all firms to reduce pollution by the same amount (half of the total calculated in part a); Charge a common tax per unit of pollution; Require all firms to reduce pollution by the same amount, but allow pollution permits to be bought and sold
An effluent fee O is a reward to companies using production methods that create positive externalities. O is also called a pollution subsidy. O gives a firm the right to pollute if it pays a tax on what it discharges. O is intended influence the market by increasing supply and decreasing price.
The government wants to address the pollution associated with the production of a good by introducing a tax on negative externality. The government is unsure about the magnitude of the negative externality (social cost of pollution) and hence it is considering two options: a high tax and a low tax option. Which statement(s) is/are true? Mark all that applies. Group of answer choices The government’s tax revenue will be higher under the high tax option. The government’s tax revenue may not be higher under the high tax options. The consumption level of the good may be lower under the high tax option. Regardless of whether the high tax or the low tax option is introduced, the cost of the tax is still lower than the social cost of pollution. Both high tax and low tax options are cost-effective in achieving a given level of pollution reduction as long as the same tax applies to all polluting sources. Only the high tax option is cost-effective.
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Setup Suppse that the Demand and Supply for Electricity is given below. The production of electricity has a negative externality. Demand: QD= 9.875 -0.125P Supply: QS= 4P -19 Inverse Demand: P=79-8QD Inverse Supply: P=4.75+0.25QS Marginal Spillover Cost: MSPC= 9.5 +Q 1) Determine the Efficient Quantity. 2) Calculate the Deadweight Loss from Externality. 3) Calculate Optimal Pigovian Per Unit Tax 4) Calculate Tax Revenues Market Price: $7.00 Market Quantity: 9
There are two consumers of mosquito abatement (a public good), Dave and Lilly. Dave’s benefit from mosquito abatement is given by ??? = 100 − ?, where Q is the quantity of mosquito abatement. Lilly’s benefit is given by ??? = 60 − ?.a. Calculate the total marginal benefit, ???.b. Suppose that mosquito abatement can be provided at a marginal cost of ?? = 2?. Find the socially optimal level of abatement. c. If mosquito abatement is privately supplied, what quantity will be supplied by Dave, and what quantity will be supplied by Lilly? Briefly explain.
The market for pens in Howards is perfectly competitive with no externalities. Market demand is given by Q=165-P. Market Supply is given by Q=P-16.What is total Surplus in this market?
Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society's marginal benefit from pollution reduction is given by MB = 590- 3Qtot, where Qtot is the total reduction in pollution. The socially optimal level of firm A's pollution reduction is Hint: Type integers. reduction is The socially optimal level of firm B's pollution
The cost (supply) of each "unit" of NPR (National Public Radio) is P=9. Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pk=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an 수 of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Qr= The appropriate subsidy is $ (include 2 decimals) per unit of NPR
I need help with this one please. thank you!
Refer to the diagrams below in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If the marginal cost of the optimal quantity of this public good is $6, the optimal quantity must be: $12 10 Alvin (a) 4. 2. 4. $12 10 Elmer 6. 4. (b) 2.

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