the marginal cost of advertising is $40 and you determine that there are two types of franchisees with different
marginal benefit from advertising functions:
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you haven't provide marginal benefits
functions but from previous quetion i am able to answer this .
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the marginal cost of advertising is $40 and you determine that
there are two types of...
5 Suppose the marginal willingness to pay for each of two individuals who will benefit from...
5 Suppose the marginal willingness to pay for each of two individuals who will benefit from some public good is MWTP = 5 – 2Q and the marginal cost of providing the public good is MC = 3 + 3Q. A. Determine the socially efficient quantity of this public good.Derive your answer algebraically and illustrate by graphing the aggregate WTP and the MC functions. B. Calculate the total willingness to pay and the total cost of providing the socially efficient...
Suppose the marginal external cost of emissions of a certain substance is equal to $16. Furthermore...
Suppose the marginal external cost of emissions of a certain substance is equal to $16. Furthermore assume that there are two sources of these emissions. The unregulated emissions (Ei), total cost of abatement (TCA), and marginal cost of abatement (MCA) for the two sources are given below TCA, = (Al)2 MCA -2A MCA2 - A2 Source 1: E,-20 E, = 20 Source 2: TCA25%(A). abatement for each source? Illustrate in a diagram. [6] a function of the tax? What is...
me bn dne one P 40- Q And suppose that Mr India is monopoly supplier of...
me bn dne one P 40- Q And suppose that Mr India is monopoly supplier of lamb biryani in the township with a constant marginal cost: MC 10 a) On a clearly labeled diagram, sketch the demand, marginal revenue, and marginal cost curves and calculate and show the monopolist's profit-maximising quantity (QM) and the price that will be charged in the market (PM). (4 marks) b) Calculate the consumer surplus and producer surplus at the monopoly equilibrium and the deadweight...
week's discussion by briefly explaining the difference between these two types of pollutants. The authors define...
week's discussion by briefly explaining the difference between these two types of pollutants. The authors define the efficient amount of fund pollutants as the amount that minimizes the sum of damage and control costs. Using this definition, they derive two general rules, one of which is that the efficient level of pollution is not generally zero. Briefly explain why this is true. Can you think of a fund pollutant for which this might not be the case, i.e., a pollutant...
Consider a marginal damage function as following; the MD initially rises with the amount of pollution (M), however, wh...
Consider a marginal damage function as following; the MD
initially rises with the amount of
pollution (M), however, when some critical level is reached, an
individual who can no longer
tolerate leaves such that the damage to them becomes zero. When
many individuals are affected
and they have different tolerance levels to the increasing
concentrations, the sum of MD begins to
fall as depicted in the diagram below. The MB function is of
conventional shape.
Identify the efficient point(s) on...
3. Suppose there are only two groups of users (Residential and Industrial) of a non-accumulative source...
3. Suppose there are only two groups of users (Residential and Industrial) of a non-accumulative source of surface water. The MWTP or Marginal Benefit (MB) functions for the two groups are: MB, = 12 - Q. MBR = 10 - QR where Q, is the amount of water used by Industrial users and QR is the amount of water used by Residential users. Suppose it costs MC=2 to extract and deliver the water. a. Calculate the economically efficient allocation of...
Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is...
Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is given by MC=1.5Q + 2. The demand curve is given by P =32 - 1.8Q, which gives MR=32-3.6Q In the most efficient outcome (which perfectly competitive markets achieve), P=MC. Solve the equilibrium price and quantity in that case. The most efficient equilibrium quantity is Blank 1. Calculate the answer by read surrounding text. . The most efficient equilibrium price is Blank 2. Calculate the...
Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is...
Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is given by MC=1.4Q + 1. The demand curve is given by P =33 - 1.5Q, which gives MR=33-3Q In the most efficient outcome (which perfectly competitive markets achieve), P=MC. Solve the equilibrium price and quantity in that case. 1. The most efficient equilibrium quantity is? Calculate the answer by read surrounding text. . 2. The most efficient equilibrium price is? Calculate the answer by...
Consider two firms (i.e., firms 1 & 2) with heterogeneous marginal abatement cost functions: MAC1=12 -...
Consider two firms (i.e., firms 1 & 2) with heterogeneous marginal abatement cost functions: MAC1=12 - 2E1 MAC2 =10 - E2 Assume the marginal external damages from emissions are: M E D = 1/2 E A . where EA is the sum of the two firms’ emissions. What quantity of emissions do firms produce in the absence of government intervention? What are the total external damages? What are the total abatement costs? Derive the aggregate marginal abatement cost function (Hint:...
Consider two firms (i.e., firms 1 & 2) with heterogeneous marginal abatement cost functions: MAC1 =12−2E1MAC2...
Consider two firms (i.e., firms 1 & 2) with heterogeneous marginal abatement cost functions: MAC1 =12−2E1MAC2 =10−E2. Assume the marginal external damages from emissions are: M E D = 12 E A . where EA is the sum of the two firms’ emissions. What quantity of emissions do firms produce in the absence of government intervention? What are the total external damages? What are the total abatement costs? Derive the aggregate marginal abatement cost function (Hint: This will be a...
Suppose the marginal external cost of emissions of a certain substance is equal to $16. Furthermore assume that there are two sources of these emissions. The unregulated emissions (Ei), total cost of abatement (TCA), and marginal cost of abatement (MCA) for the two sources are given below TCA, = (Al)2 MCA -2A MCA2 - A2 Source 1: E,-20 E, = 20 Source 2: TCA25%(A). abatement for each source? Illustrate in a diagram. [6] a function of the tax? What is...
me bn dne one P 40- Q And suppose that Mr India is monopoly supplier of lamb biryani in the township with a constant marginal cost: MC 10 a) On a clearly labeled diagram, sketch the demand, marginal revenue, and marginal cost curves and calculate and show the monopolist's profit-maximising quantity (QM) and the price that will be charged in the market (PM). (4 marks) b) Calculate the consumer surplus and producer surplus at the monopoly equilibrium and the deadweight...
week's discussion by briefly explaining the difference between these two types of pollutants. The authors define the efficient amount of fund pollutants as the amount that minimizes the sum of damage and control costs. Using this definition, they derive two general rules, one of which is that the efficient level of pollution is not generally zero. Briefly explain why this is true. Can you think of a fund pollutant for which this might not be the case, i.e., a pollutant...
Consider a marginal damage function as following; the MD
initially rises with the amount of
pollution (M), however, when some critical level is reached, an
individual who can no longer
tolerate leaves such that the damage to them becomes zero. When
many individuals are affected
and they have different tolerance levels to the increasing
concentrations, the sum of MD begins to
fall as depicted in the diagram below. The MB function is of
conventional shape.
Identify the efficient point(s) on...
3. Suppose there are only two groups of users (Residential and Industrial) of a non-accumulative source of surface water. The MWTP or Marginal Benefit (MB) functions for the two groups are: MB, = 12 - Q. MBR = 10 - QR where Q, is the amount of water used by Industrial users and QR is the amount of water used by Residential users. Suppose it costs MC=2 to extract and deliver the water. a. Calculate the economically efficient allocation of...
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