Consider a competitive market in which the MPB = 129-3q and the MSC =3q. In this market, however, there is a positive consumption externality of $50 per unit consumed. What is the efficient level of output in this market? [Round your answer to two decimal places when needed]
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![Consider a competitive market in which the MPB = 129-3q and the MSC =3q. In this market,
however, there is a positive consumption externality of $50 per unit consumed. What is the
efficient level of output in this market?
[Round your answer to two decimal places when needed]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14369b52-2c1a-42af-9b79-322292fda5dd%2Fdd2f971c-30eb-41c5-a67e-ffbb92c772e5%2F47ss03_processed.png&w=3840&q=75)
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- Using examples to differentiate between positive consumption externalities and negative production externalities. Answer text Rich text editorImagine 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:Consider a competitive market in which the MPB = 180 – 2q and the MSC = q. In this market, however, there is a positive consumption externality of $60 per unit consumed. What is the efficient level of output in this market? A. 60 B. 80 C. 70 D. 90 E. 100
- Externalities are a form of market failure. Identify two externalities related to Covid-19, one positive and one negative. Graph and explain how each externality affects the optimal amount of the good that is generating the externality.Q4. (a) If you are a firm owner who is operating in the perfect competitive market, you areproducing socially efficient outcome. Does it imply that your profits are zero? If you become amonopolist then why do you deviate from the socially efficient outcome? b) In Delhi, as the winter season is approaching, how will it affect the demand function and themarket equilibrium of sweater market? Now after that if the price of wool increases how will themarket equilibrium be affected?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.
- . Fertilizer supply is explained by the following equation: ?? = 3,000? where ?? is the supply per year and ? is the price of fertilizer per ton. Demand for fertilizer is explained by: ?? = 500,000 - 20,000? where tons there is a lot of fertilizer demanded every year. The marginal external cost of $ 30 is associated with the production per ton of fertilizer due to pollution associated with fertilizer production. Answer the following questions and explain your answer by showing your work. a. Assuming that fertilizer is sold in a competitive market, what is the market price?Only typed answer and please don't use chatgpt The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q. 1A. How many leather is produced in the free market if the externality is not corrected. B) What is the free market price of the leather if the externality is not corrected? C) What is the social marginal cost?For the following pair of parameter and choice variable indicate whether the relationship is positive, negative, ambiguous, or no effect. Explain in a sentence or two. Cordon pricing and Congestion externality
- 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 efficient equilibrium, QE and PE.Over the last 10 years the federal government has dramatically increased the number of regulations pertaining to transportation security and the effects of transportation on the environment. After the terrorist attack on the United States on September 11, 2001, the Department of Homeland Security (DHS) was established. Within the DHS is the Trans- portation Security Administration, which is responsible for implementing regulations to protect the safety of passengers using the U.S. airline industry. These regulations require passengers to be screened for illegal items before they enplane, limit the size and nature of items in carry-on luggage, and provide guidelines for more intense scrutiny of ran- domly selected passengers. Critics of these policies complain that these policies delay passengers, increase time through airports, cause delays, and increase costs for the air- lines. Proponents of these policies argue that the safety of air passengers is more impor- tant that these delays…Suppose a small country, Country X, is considering implementing a Carbon Tax to address environmental concerns and reduce carbon emissions. The government believes that such a tax will have an impact on the country's economic performance. Given the following data: Current annual carbon emissions: 500,000 metric tons The government proposes a carbon tax of $30 per metric ton of carbon emitted. Calculate the potential change in annual carbon tax revenue if the country successfully reduces its carbon emissions by 20% after the implementation of the Carbon Tax.
