ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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1. suppose you are working for protecting fish habitat in the Mississippi River. you know that there are many cities along the river that use the river to dump treated sewage water, but there are still pollutants that mimic estrogen that is put into the water in this treated sewage water and these can damage fish populations. How would you know if you should use a permit system or a
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- 4. Four roommates are planning to spend the weekend in their dorm suite watching old olent atsomos movies, and they are debating how many to watch. The table below contains their willingness to pay for each film. John Paul George $7 $5 $3 $6 $4 $2 $5 $3 $1 $4 $2 $0 $3 $1 $0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? 1st film 2nd film 3rd film 4th film 5th film C. 2102 gulden et 150 yebesnbew sho 12bo 2099712 vdio (9) b. If it costs $8 to rent a movie, how many movies should the roommates rent in order to maximize total surplus? obivo hasb fl qasihe: Ox Ringo og $2 $1 $0 $0 $0 25807) 1610A (b If they chose this optimal number of movies and split the cost evenly, how much surplus does each person receive from renting these movies? d. Is there any way to split the cost so that everyone benefits? What problems arise with this plan? e. Suppose they agree in advance to choose the efficient number of movies and split the cost based on willingness to pay.…arrow_forwardThe deadweight loss that results from this externality is represented by area _______. Group of answer choices G+C A B+C B+Earrow_forwardRefer to the table below, which describes the market for cigarettes in terms of marginal benefits, private marginal costs, and private+social marginal costs. Marginal benefits Private marginal costs Private + social marginal costs $8 $12 $4 $10 $6 $10 $12 $8 $8 $6 $10 $14 $4 $12 $16 Calculate the equilibrium quantity of cigarettes that would be produced and sold if society incorporated the negative externalities of cigarettes by taxing cigarettes. Type your answer... Quantity 100 200 300 400 500 Previous DE O 2º W 3 E a Q $ 4 R % 5 ♫ JMA T A 6 MacBook Pro Y & 7 W D U 8 P 1+ I S ( 9 cricut O 0 P 13 { ( Next Oarrow_forward
- 10 8 6 4 3 P ($) SB 1 5 6 7 8 9 10 The graph above shows a market with an externality. Refer to the graph to answer the following questions: . In this market the externality is ♦ . If the government does not interfere in the functioning of this market, the quantity traded in the market is and the price is $ . One way for the government to move the market to the efficient point is to implement a corrective in the amount of $ per unit. 2 S.arrow_forward[The drainage of waste products from the chemical factory, Ultra Chemicals, situated along the banks of the Misty River has led to the formation of a dead zone in the river that cannot support aquatic life.] [Without any government intervention, will Ultra Chemicals produce a socially optimal quantity? Why or why not? Explain your answer in 200 words or less with the help of a suitable diagram. [Does Ultra Chemicals impose a deadweight loss on society? Explain in 100 words or less. Use your diagram to show the deadweight loss to society. [How can a government intervene to improve upon the outcome from society’s point of view? Explain in 100 words or less. Diagram not needed.arrow_forwardExplain the role of the government is trying to provide a solution when an externality is presentarrow_forward
- Need some helparrow_forwardPlease draw and upload an externality graph for the "Truck Tire" market in the US. Use the data provided to draw each axis, plot the points and create the following curves: 1) Demand, 2) Supply (private), and 3) Supply (social), Also mark equilibrium on both S (private)and S (social). After you draw the curve, explain it and describe how government can use it to regulate this tire market. Price Quantity Demanded Quantity Supplied (Private) Quantity Supplied (Social) $ 300 $10 million $ 35 million $ 30 million $ 250 $15 million $30 million $25 million $ 200 $20 million $25 million $20 million $150 $25 million $20 million $15 million $ 100 30 million 15 million 10 millionarrow_forwardIs it in the public interest to tax cigarettes? Explain your position using some of the economic concepts or graphs.arrow_forward
- #18arrow_forwardOnly typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…arrow_forwardFirm A currently dumps 243 tons of chemicals into the local river. Firm B currently dumps 126 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives Firm A 61 pollution permits and gives Firm B 65 pollution permits. The abatement costs of one ton of pollution is $113 for Firm A and $165 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?arrow_forward
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