I need parts D, E, F only! 1. Consider a firm that manufactures dyed textiles. The...
We are considering a market with marginal cost of P=100+2Q and a demand of P=500-2Q. Use that information to answer the following questions. a. Find the market equilibrium (price and quantity in the market). b. Find producer and consumer surplus. c. Now imagine production of this good created a negative externality of 1$ per unit of output. Find the socially optimal outcome (price and quantity) taking this externality into account. d. Find consumer and producer surplus at the socially efficient...
*ONLY NEED HELP WITH PARTS E & F please show all steps so I can fully understand how to solve. Thank you ! explain 4. Suppose that the demand curve and supply functions are go = 300-5p and qs = 100+20p. respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus (d) Suppose the government...
1. Externalities - Definition and examples Aa Aa E An extemality arises when a firm or person engages in an activity that influences the well-being of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is beneficial, it is called a extemality. With this type of extemality, in the absence of goverment intervention, the equilibrium quantity produced will be _ than the efficient quantity. The following graph shows the...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2 q^2 Marginal Cost: MC= q where qq is an individual firm's quantity produced. The market demand curve for this product is Demand QD=160−4PQD=160−4P where PP is the price and QQ is the total quantity of the good. Each firm's fixed cost is $_____ What is each firm's variable cost? q 50+1/2 q 1/2q 1/2q^2 Which of the following represents the equation for each firm's...
i need question b please 1. The town of Springfield has two steel producers that pollute the air with Sulfur Dioxide (SO). Their supply curves are shown below, with quantities and kilotons and price per kilo. Producer + Producer B 2 . . . 10 12 # 16 Drano * 12 HM De a. Suppose the price of steel is $8/kho (demand is perfectly elastic). Draw the market supply curve and the equilibrium quantity of steel produced by the two...
Consider a perfectly competitive industry in which each firm i has a total cost function given by the equation: TC= 128 + 4q+2q^2. Further assume that the industry demand function is given by the following: P = 84 – 2Q. a) Describe the long run market equilibrium. That is, identify the equilibrium price and quantity, output for each firm, the number of firms in the industry and the level of producer and consumer surplus. What is the value of own...
An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Shift one...
Problem Setup Analyze each of the following three scenarios (Efficient, A, and B) describing the market for widgets. Consider the market for widgets. Consumers have a market (aggregate) marginal benefit curve of MB = 50 – 3Q. The supplier(s) in that market have a market (aggregate) marginal cost curve of MC = 10 + 2Q. Efficient Outcome ● Use the marginal benefit and marginal cost equations given above to determine the efficient quantity Equilibrium with Marginal Cost Pricing (Scenario A)...
****IMPORTANT**** PLEASE ONLY PARTS F AND G. 1) Consider the market for new cars. a. Identify four factors that may infl uence the demand for new cars (eit her movements along the demand curve or shifts of the demand curve). (2pts) b. Identify four factors that may infl uence the supply of new cars. (2pts) c. If the cost of steel goes up, how will supply or demand (if either) be affected? What wil happen to the equilibrium price and...
An externality arises when a firm or person engages in an activity that affects the well-being of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Shift one...