Market demand for plastic straws is P = 50 – 0.02Q, and marginal cost MC =...
Market demand for plastic straws is P = 50 – 0.02Q, and marginal cost MC = 20 + 0.01Q, where Q is a pack of straws and P is price per pack. Each pack of plastic straws further costs the society $15 in plastic pollution. Complete the table below.
- The socially optimal quantity of plastic straws is equal to _________________
b) Briefly explain why in this specific case, a monopoly firm supplying the plastic straws is preferable to a perfectly competitive market supplying the plastic straws use graphs and number , you must provide a clear answer
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Market demand for plastic straws is P = 50 – 0.02Q, and
marginal cost MC =...
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15. a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price. d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal...
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal revenue (MR), and marginal cost (MC- ATC) curves. 150 130 110 MC-ATO 30 F5 F6 2 3 4 5 -QWERTY Tab 150 120 MC ATC 1 MR 020 40 100 120 140 100 180 QUANTITY (Units) ゲ Esc F4 FS F6 F8 4 0 20 40 0100120 14 0 10 QUANTITY (Units) if the market is perfectly competitive, profit equalsS f the market is...
a. Ae you uru ires the extensive burning of coal, and wing information about the steel...
a. Ae you uru ires the extensive burning of coal, and wing information about the steel industry. parket inverse) demand and supply for steel are 3. The process of transforming iron ore into steel requires the thus creates air pollution. We are given the following inform Assume that it is perfectly competitive. The market inverse Pa = 20 - di el production can be described by: P, = MC = 2 + 4s. Further, the marginal pollution damage from steel...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
= 18 - 1. Suppose we realize that the market described in question 1 (Market demand...
= 18 - 1. Suppose we realize that the market described in question 1 (Market demand is still Q P) has a negative externality. The cost function Cp(Q) = { Q2 is private cost. We now know the cost of the externality is Ce(Q) = Q2. a. What is the marginal cost of the externality, MCE? b. What is the marginal cost to society of production MCs? c. What is the Socially Optimal quantity and price? d. How does the...
6. (16 points) Suppose we realize that the market described in question 1 (Market demand is...
6. (16 points) Suppose we realize that the market described in question 1 (Market demand is still Q = 18 – P) has a negative externality. The cost function C(Q) = Q2 is private cost. We now know the cost of the externality is Ca(Q)=Q?. a. What is the marginal cost of the externality, MCE? b. What is the marginal cost to society of production MCS? c. What is the Socially Optimal quantity and price? d. How does the socially...
In a market, demand is given by P = 100 − Q and the (private) marginal...
In a market, demand is given by P = 100 − Q and the (private) marginal cost of production for the aggregation of all firms (the industry supply curve) is given by MC = Q. Pollution by the industry creates external damages given by the (constant) marginal external cost curve MEC = 30. (a) Calculate the output and price of if the industry operates under competitive conditions without regulation. (b) Calculate the socially efficient price and output of the industry...
4. In a market for dry cleaning, the inverse market demand function is given by P=160-10...
4. In a market for dry cleaning, the inverse market demand function is given by P=160-10 and the (private) marginal cost of production for the aggregation of all dry dleaning firms is given by MC- 10+1Q. Finally, the pollution generated by the dry cleaning process creates external damages given by the marginal external cost curve MEC 1Q Calculate the output and price of dry cleaning if it is produced under competitive cond tions without regulation. The competitive equilbrium quanity is...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide to shut down in the short-run? In the long run? 6. A firm facing demand curve p= 24-Q and MC=2Q has a new demand curve of p=36-2Q...
Consider the market for private economics help. Assume it is perfectly competitive. The market's inverse demand curv...
Consider the market for private economics help. Assume it is perfectly competitive. The market's inverse demand curve is p = 1600 -5Q, with Q being the number of students receiving help per quarter and p being price per quarter. Economics help private marginal cost curve is MCP = 100 + 5Q. Also assume that, because economics professors curve their classes, when one student improves her grade, it causes every other student to have a lower grade. This is a negative...
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal revenue (MR), and marginal cost (MC- ATC) curves. 150 130 110 MC-ATO 30 F5 F6 2 3 4 5 -QWERTY Tab 150 120 MC ATC 1 MR 020 40 100 120 140 100 180 QUANTITY (Units) ゲ Esc F4 FS F6 F8 4 0 20 40 0100120 14 0 10 QUANTITY (Units) if the market is perfectly competitive, profit equalsS f the market is...
a. Ae you uru ires the extensive burning of coal, and wing information about the steel industry. parket inverse) demand and supply for steel are 3. The process of transforming iron ore into steel requires the thus creates air pollution. We are given the following inform Assume that it is perfectly competitive. The market inverse Pa = 20 - di el production can be described by: P, = MC = 2 + 4s. Further, the marginal pollution damage from steel...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
= 18 - 1. Suppose we realize that the market described in question 1 (Market demand is still Q P) has a negative externality. The cost function Cp(Q) = { Q2 is private cost. We now know the cost of the externality is Ce(Q) = Q2. a. What is the marginal cost of the externality, MCE? b. What is the marginal cost to society of production MCs? c. What is the Socially Optimal quantity and price? d. How does the...
6. (16 points) Suppose we realize that the market described in question 1 (Market demand is still Q = 18 – P) has a negative externality. The cost function C(Q) = Q2 is private cost. We now know the cost of the externality is Ca(Q)=Q?. a. What is the marginal cost of the externality, MCE? b. What is the marginal cost to society of production MCS? c. What is the Socially Optimal quantity and price? d. How does the socially...
4. In a market for dry cleaning, the inverse market demand function is given by P=160-10 and the (private) marginal cost of production for the aggregation of all dry dleaning firms is given by MC- 10+1Q. Finally, the pollution generated by the dry cleaning process creates external damages given by the marginal external cost curve MEC 1Q Calculate the output and price of dry cleaning if it is produced under competitive cond tions without regulation. The competitive equilbrium quanity is...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide to shut down in the short-run? In the long run? 6. A firm facing demand curve p= 24-Q and MC=2Q has a new demand curve of p=36-2Q...
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