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The supply and demand of sugar are given as
Qs = 5P, Qd = 250- P
where Qs is tons supplied per year, P is the price per ton; Qd is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar. Assuming that sugar is sold in a competitive market,
- What is the market price? How many tons of paper will be produced per year at that price?
- What is the efficient output of paper?
- What is the amount of total Pigouvian tax to achieve efficiency?
- What is the amount of total Pigouvian subsidy to achieve efficiency?
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- Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.Is zero pollution possible under a marketable permits system? Why or why not?The supply and demand of sugar are given as Qs = 5P, Qd = 250- P where Qs is tons supplied per year, P is the price per ton; Qd is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar. Assuming that sugar is sold in a competitive market, What is the market price? How many tons of paper will be produced per year at that price? What is the efficient output of paper? What is the amount of total Pigouvian tax to achieve efficiency? What is the amount of total Pigouvian subsidy to achieve efficiency?
- The supply and demand of sugar are given as Qs = 5P, Qd = 250- P where Qs is tons supplied per year, P is the price per ton; Qd is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar. Assuming that sugar is sold in a competitive market, What is the market price? How many tons of paper will be produced per year at that price? What is the efficient output of paper? What is the amount of total Pigouvian tax to achieve efficiency? What is the amount of total Pigouvian subsidy to achieve efficiency? Expert Answer3) The supply and demand of sugar are given as Q. = 5P, Q = 250- P where Q, is tons supplied per year, P is the price per ton; Qa is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar. Assuming that sugar is sold in a competitive market, a) What is the market price? How many tons of paper will be produced per year at that price? b) What is the efficient output of paper? c) What is the amount of total Pigouvian tax to achieve efficiency? d) What is the amount of total Pigouvian subsidy to achieve efficiency?The supply of fertilizer is described by the following equation: Qs= 3,000P where Qs is the supply per year and P is the price of fertilizer per ton. The demand for fertilizer is described by: Qd= 500,000 − 20,000P where Qd is tons of fertilizer demanded per year. The marginal external costs of $30 are associated with the production of each ton of fertilizer due to the pollution related to fertilizer production. explain your answers by showing your work. a) Assuming that fertilizer is sold in a competitive market, what is the market price?
- Please no written by hand solution In this question, the letter “A” denotes the last 4 digits of your student number (for example, if your student number is: 183405022, then A = 5022). The perfectly competitive market for coal in a particular region of Turkey is characterized by the following demand and supply curves: QD = 15000 − 300P and QS = −A + 200P. Moreover, the marginal external cost associated with the production of coal is given by the curve: MEC = Q/800. a) Compute the market equilibrium price and output for coal.b) Compute the socially efficient price and output for coal. (Hint: What is MPB, MPC, MSB and MSC?) c) Explain why the answers you calculated in parts (a) and (b) differ.d) Suppose that the government wants to implement a per-unit tax on coal production so that the socially efficient level of production is reached in the market. Write the MPC of the firm with including tax. What is the level of tax that leads to socially efficient output?Amityville has a competitive chocolate industry with the (inverse) supply curve Ps = 440 + Q. While the (inverse) market demand for chocolate is pd = 1200 – Q, there are external benefits that the citizens of Amityville derive from having a chocolate odor wafting through town. The marginal external benefit schedule is MEB = 60 – 0.05Q. 1. What is the socially optimal amount of chocolate production in Amityville? 2. Since there is a positive externality, the level of chocolate production in a competitive market will be too low. If the government of Amityville used a subsidy of $S per unit to encourage the optimal amount of chocolate production, what level should that subsidy be? Hint: the principle is the same as finding the optimal tax when there is a negative externality, the subsidy should be related to the marginal external benefit just like the tax is related to the marginal external cost.The market for paper in a particular region in the United States is characterized by the following demand and supply curves: Qp = 155,000 – 2,000P and Qs = 35,000+ 2,000P where Q is the quantity demanded in 100-pound lots, Qs is the quantity supplied 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping widespread. The marginal external cost (MEC) associated with the production of paper is given by the curve MEC = 0.0006Qs. made to monitor or regulate the dumping of effluent. (Enter your responses rounded to two decimal places.) a. Calculate the output and price of paper if it is produced under competitive conditions and no attempt Without regulation, the price. $per 100-pound lot, and the quantity is 100-pound lots.
- Assume that the extraction of water from an aquifer by a coal mining company imposes a cost on farmers that grow citrus crops. Assume that the supply curve for coal is given by the following: p = 240 +2Q. Further, assume that the demand curve for coal is given by the following: p = 900 – 3Q. If the marginal external cost (MEC) of coal mining is equal to 0.5Q, which of the following is true? At the competitive equilibrium a deadweight loss of 396 occurs and a Pigouvian tax of 60 will lead to an efficient outcome. At the competitive equilibrium a deadweight loss of 792 occurs and a Pigouvian tax of 60 will lead to an efficient outcome. At the competitive equilibrium a deadweight loss of 396 occurs and a Pigouvian tax of 120 will lead to an efficient outcome. At the competitive equilibrium a deadweight loss of 792 occurs and a Pigouvian tax of 120 will lead to an efficient outcome. None of the above.Side 19 A mine owner faces the following marginal cost (MC) function: MC= 100 +15*X Where X is tons of the mineral extracted The mining of the mineral has external costs. The marginal external cost (MEC) has the following function: MEC = 5*X Where X is the tons of the mineral extracted. The (marginal) price curve (PC) has the following function: PC= 600 -5*X Where X is tons of the mineral the bought What is the optimal extraction level in tons? Vælg én svarmulighed O 15 O 18 O 23 O 20The market for paper in a particular region in the United States is characterized by the following demand and supply curves: QD = 160000 - 2000P QS = 50000 + 2000P where QDis the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost (MEC) associated with the production of paper is given by the curve: MEC = 0.0006Qs Find the competetive equilibrium price and quantity with no attempt is made to monitor or regulate the dumping of effluent. Then find the socially efficient price and output of paper.