EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 16.7, Problem 2MQ
To determine
To explain: A public good that had a non-rivalry property but not the non-exclusivity property be subject to free riding and the reason for such a good be produced at inefficient level.
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6. We have the following data for Demand Price and Costs for our product.
Quantity
Demand Price
Costs
300
100
$21.63
$35.35
$5040.00
$2347.67
500
$17.25
$7481.67
1000
$12.70
$12469.67
1500
$10.26
$16196.00
We have reason to believe that the Demand Price is a power (exponential) function of
some kind. Our Cost function is close to linear, but we expect, from some market
analysis, that it is in fact quadratic. Approximate this data with a Demand Price function
and a Cost function. Explain how confident you are; that is, how much error do you
think is reasonable in this type of scenario?
区
ABC limited faces Marginal cost function given by MC=0.2Q and it faces a perfectly competitive price of shs. 40 for its output.
Calculate the ABC competitive output level
Given that ABC is exerting a negative externality and its socil marginal cost of production is estimated to be MC= 0.4Q, if the market price remai the same at shs. 40. Calculate the socially optmal level of production for ABC
if the government imposes an excersice tax to bring about optimal level of production, calculate the level of tax to be imposed and total tax revenue the government is expected to rise
When applied to a public good, 'non-rival' means that
Select one:
A. Consumption of the good by one person does not reduce the amount available to others
B. The resources used in its production could not have been used to produce other goods
C. If the good is provided for one person it must be provided for others
D. There is a single monopoly supplier of the good
Chapter 16 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 16.2 - Prob. 1TTACh. 16.2 - Prob. 2TTACh. 16.2 - Prob. 1MQCh. 16.3 - Prob. 1MQCh. 16.3 - Prob. 2MQCh. 16.3 - Prob. 1TTACh. 16.3 - Prob. 2TTACh. 16.4 - Prob. 1MQCh. 16.4 - Prob. 2MQCh. 16.7 - Prob. 1MQ
Ch. 16.7 - Prob. 2MQCh. 16.8 - Prob. 1TTACh. 16.8 - Prob. 2TTACh. 16.8 - Prob. 1.1TTACh. 16.8 - Prob. 2.1TTACh. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 16.1PCh. 16 - Prob. 16.2PCh. 16 - Prob. 16.3PCh. 16 - Prob. 16.4PCh. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Prob. 16.10P
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