W₁ = $200 - T, W₂ = $240-2T, W3 = $320-2T. Suppose public television is a pure public good that can be produced at a constant marginal cost of $200 per hour. a. What is the efficient number of hours of public television? b. How much public television would a competitive private market provide?
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- 6) If Mark sells the profit-maximizing quantity, what would the deadweight loss created by the negative externality be?There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by W₁ = 200 - T W₂ = 240 - T W3 = 320 - T Suppose public television is a pure public good that can be produced at a constant marginal cost of $210 per hour. What is the efficient number of hours of public television? The efficient number of hours is (Enter your response rounded to two decimal places.) How much public television would a competitive private market provide? Assuming a competitive private market would provide public television, it would produce hours of public television. (Enter your response roundedSuppose in problem 1 that a tax of $1 per pack is imposed. How many packs will be consumed?
- 6. There are three groups in a community. Their demand curves for public television in hours of programs, T, are given respectively by W1 = $200 – T W2 = $240 – 2T W3 = $320 – 2T Suppose public television is a pure public good that can be produced at a constant marginal cost of $200 per hour. What is the efficient number of hours of public television?There are three groups in a community. Their demand curves for public television in hours of programming, T are given respectively by W1=$200-T W2=$240-2T W3=$320-2T supppse public television is a pure public good that can be produced at a constant marginal cost of $200 per hour.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?
- Consider a competitive market for Good Y. This good involves a negative consumption externality. i) Is this market efficient? Why? ii) Imagine that the competitive market for Good Y consolidates and becomes a monopoly. Does this make the market more, or less efficient relative to the situation above? Include a graph to make the point clearer.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.deman curve, P = 30 - 5Q market supplly curve, P = 6+Q external cost, d =. 6 a) socially efficient quantity and price b) total social welfare at socially efficient quantity c) dead weight loss from the negative externalitites
- 1) a. what is the profit maximizing quantity of the good for The industry (Q1) when it is not forced to consider the externality? The profit-maximizing quanity for the industry (Q1) is: b. what is the profit maximizing quantity for the representative individual firm (q1)?11-) Andrew, Beth, and Cathy live in Lindhville. Andrew’s demand for bike paths, a public good, is given by Q = 12–2P. Beth’s demand is Q = 18–P, and Cathy’s is Q = 8–P/3. The marginal cost of building a bike path is MC = 21. The town government decides to use the following procedure for deciding how many paths to build. It asks each resident how many paths they want, and it builds the largest number asked for by any resident. To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a, b, and c per path, respectively, where a + b + c = MC. (The residents know these tax rates before stating how many paths they want.)A-). If the taxes are set so that each resident shares the cost evenly (a = b = c), how many paths will get built?B) Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?5) Suppose: i) the price of gasoline is $2 per gallon ii) current consumption is 400 (million) gallons per day iii) the elasticity of demand is -0.8 iv) retail provision of gasoline may be approximated as a constant cost industry v) there is an external cost of $0.5 per gallon of gas. Calculate deadweight loss associated with the externality. Draw a figure to illustrate.