2. The first two columns of the table show the demand schedule for electricity from a...
Table 1 shows the demand schedule for electricity from a coal burning utility. Table 2 shows the utility's cost of producing electricity and the external cost of the pollution created. If the government levies a pollution tax such that the utility generates the efficient quantity of electricity, calculate the quantity of electricity generated, the price of electricity, the size of the pollution tax, and the tax revenue. The quantity of electricity generated is nothing kilowatts a day and the price...
This Question: 1 pt 44 of 60 (45 complete) This Test: 60 pts possib Table 1 shows the demand schedule for electricity from a coal burning utility Table 1 Price (cents per kilowatt) 4 Quantity demanded (kilowatts per day) 500 400 300 200 100 Table 2 shows the utility's cost of producing electricity and the external cost of the pollution created With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost...
2.The uble provt ๓ information about costs and benefits that anse omthe est cideproo action hatp Marginal Cost utesi ikeusedt atam er- Output of pesticide (toas per week) farginal extemal costMarginal social benefit dollar per loe) 1S 30 50 67 100 105 s5 140 40 1) If no one owns the lake and if there is no regulation of pollution, what is the quantity of pesticide prodeced and what is the marginal cost of pollution bome by the farmer? (4...
Sole Power Generating Ltd (SPC) is electricity generating firm, and it is the only electric power generating company the state. The market demand for electricity is estimated as: Qd = 1,700 – 20P and the market supply for the electricity is Qs = - 400 + 40P. Where: Q = Quantity of energy in kilowatt produced per day (in thousands) P = Price per kilowatt in Naira a) Calculate the Monopoly’s equilibrium price and quantity. (5 points) b) Calculate the...
Price of electricity Demand QQ4 Quantity of electricity Coal burning utilities release sulfur dioxide and nitric acid which react with water to produce acid rain. Acid rain damages trees and crops and kills fish. Because the utilities do not bear the cost of the acid rain, they overproduce the quantity of electricity. This is illustrated in the Figure above. (Hint: Demandan> Marginal benent: 5,"> Marginal Private Cost: 52**> Marginal Social Cost] Refer to the Figure above. Sy represents the supply...
2)Consider the following supply and demand schedule for steel.. Pa 100-4Qd a. Calculate the market equilibrium price and quantity for steel. (4pts)- Answer: 100-4Q-9+3Q Q-13 Quantity-13. P-48 Pricw b. Pollution from steel production is estimated to create an external cost of $14 per ton. Show the demand and supply schedule graphically and identify the external cost curve, market equilibrium, deadweight loss, and social optimum quantity. (4pts)- c. Assume there is no intervention in this market. Calculate consumer surplus and producer...
PART TWO. Answer the following problems in the space provided. Please show your work in an organized way with clearly labeled graphs should if you choose to use any. Total 80 Points. 5. Suppose that the market for a certain good has a demand of P 80 -Q. The aggregate private marginal cost for the firms that produce the good faces is MC = 3Q + 20. However, production of the good also creates pollution with a marginal external cost...
The table below presents the demand schedule and marginal costs facing a monopolist producer. TR ($) MR ($) MC($) Q 0 P($) 10 0 5 13 5 5 19 8 2 Instructions: Round your answers to the nearest whole number and include a negative sign if appropriate. Leave no cells blank. Enter O if appropriate. a. Fill in the total revenue and marginal revenue columns. b. What is the profit-maximizing level of output? units c. What price will the monopolist...
Part II: Market Failure in the Passenger Airline Industry and Policy (30%) For full marks: Craphs: Plot graphs to scale on graph paper by hand, include a figure number, title, and label all axis including correct units, be neat and tidy and put in order in the assignment. Introduce the graph with a sentence before it. 2) For algebra, use short sentences to guide the reader (SSTGR) through your work. Example: "To find the perfectly competitive market equilibrium global daily...
Duke Energy manufactures and distributes electricity to customers in the United States and Latin America. Duke recently purchased Cinergy Corporation, which has generating facilities and energy customers in Indiana, Kentucky, and Ohio. For these customers Cin- ergy has been spending $725 to $750 million each year for the fuel needed to operate its coal-fired and gas-fired power plants; 92% to 95% of the fuel used is coal. In this region, Duke Energy uses 10 coal-burning generating plants: five located inland...