9. Suppose that a wood pulp mill is situated on the bank of a river. The...

Question

Question

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

when Socicl maoginal cu 30 External masqinalcos maginel beniHh bPro is maximizeol when- m8 mc 30-o.sy 10+ט.sy 30-1o 0 sy o.Sy 20 20 The proHt maximizinq out put level of woo ațw0od ニ20 O. Social net beniit is mazimized whent 30-o.sy =2り+0.Sy Social net benitit İsT-10-1

Add a comment

Answer 2

Similar Homework Help Questions

9. Suppose that a wood pulp mill is situated on the bank of a river. The...

9. Suppose that a wood pulp mill is situated on the bank of a river. The private marginal cost (MC) of producing wood pulp is given by the function MC 10+0.5Y where Y is tons of wood pulp produced. In addition to this private marginal cost, an external cost is incurred. Each ton of wood pulp produces pollutant flows into the river which cause damage valued at S 10. The marginal benefit(MB) to society of each ton of produced pulp...
9. Suppose that a wood pulp mill is situated on the bank of a river. The...

9. Suppose that a wood pulp mill is situated on the bank of a river. The private marginal cost (MC) of producing wood pulp is given by the function MC 10+0.5Y where Y is tons of wood pulp produced. In addition to this private marginal cost, an external cost is incurred. Each ton of wood pulp produces pollutant flows into the river which cause damage valued at S 10. The marginal benefit(MB) to society of each ton of produced pulp...
9. Suppose that a wood pulp mill is situated on the bank of a river. The...

9. Suppose that a wood pulp mill is situated on the bank of a river. The private marginal cost (MC) of producing wood pulp is given by the function MC- 10+0.5Y where Y is tons of wood pulp produced. In addition to this private marginal cost, an external cost is incurred. Each ton of wood pulp produces pollutant flows into the river which cause damage valued at S 10. The marginal benefit(MB) to society of each ton of produced pulp...

The graph illustrates the unregulated market for pulp and paper Price (dollars per ton into a...

The graph illustrates the unregulated market for pulp and paper Price (dollars per ton into a river that runs through a small town. The marginal external cost of the dumped waste is equal to twice the marginal private cost. So the marginal social cost of producing pulp and paper is three times the marginal private cost. What is the quantity of pulp and paper produced if no one owns the river? What is the deadweight loss from pulp and paper...
10. A paper mill discharges chemicals into a river which pollutes the shores of a downstream...

10. A paper mill discharges chemicals into a river which pollutes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: MCP = 5 +Q MCS = 10 + 2Q MB = 35-0.5Q The marginal external cost at the allocatively efficient equilibrium is: (a) 15 (b) 5 (c) 20 (d) 25 (e) 10
Steel production from a mill generates a negative externality because of the environmental damage linked to...

Steel production from a mill generates a negative externality because of the environmental damage linked to air and water pollution. Suppose the market demand and supply curves are given by: Demand (MB): P = 400 - 3Qd Supply (MC): P = 200 + Qs Q is tons of steel and P is price per ton of steel. Note in this form, the demand and supply curve are solved for P -- you can see directly the lines on our supply and demand...

What's Hot 3 HP Games Imported From IE U SGIVIUG 13. Suppose the figure to the...

What's Hot 3 HP Games Imported From IE U SGIVIUG 13. Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic compounds, which are a type of air pollution. As a result, the cost of production to society is greater than the private cost of production. The marginal private cost of production is represented by MC, and the marginal social cost is represented by MC2 Suppose the government decides to...
4. The effect of negative externalities on the optimal quantity of consumption Consider the market for...

4. The effect of negative externalities on the optimal quantity of consumption Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the factory. Producing an additional ton of paper imposes a constant marginal external cost of $100 per ton. The following graph shows the demand curve and the private marginal cost (MC) curve for paper. (Note: The demand for the plant's paper is...
Q4 (1 point). The figure below shows the marginal social benefit, marginal private cost and marginal...

Q4 (1 point). The figure below shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced? oo tons O 2 tons О 4 tons O 8 tons 250 MSC 6200 S = MC Price and cost (dollars per ton of steel) 150 100 50 o 2 D- MSB 6 8 10 Quantity (tons of steel per week) Activate Windows Go to Settings...

1. A marginal external cost of a product is equal to A. what the producer has...

1. A marginal external cost of a product is equal to A. what the producer has to pay to hire resources to produce another unit. B. the cost someone other than the producer incurs when another unit is produced. C. what the consumer must pay when he or she buys the good or service. D. the cost the producer incurs to produce another unit. E. None of these answers describes a marginal external cost. 2. The graph shows the benefits...

9. Suppose that a wood pulp mill is situated on the bank of a river. The...

Homework Answers