The equimarginal principle requires that total production be distributed among sources so that their marginal costs...
The equimarginal principle requires that total production be distributed among sources so that their marginal costs of production are equalized. How is this principle related to the socially efficient level of output?
Homework Answers
At the socially efficient level of emissions, Marginal Damages are minimized. At this same level of production, firms will produce at E* to minimize MD and distribute the cost of abatement by equalizing costs.
Add Answer to:
The equimarginal principle requires that total production be
distributed among sources so that their marginal costs...
2. The table shows the emissions of two sources and the marginal abatement costs (MCC, 1,000/week)...
2. The table shows the emissions of two sources and the marginal abatement costs (MCC, 1,000/week) Emissions 12 1 10987654320 tons/week MCC. Source! | Ο | 1 | 2 | 3 | 4|ST 8 10T 14T 24|38|70 MCC: Source0 2 4 6 10 14 20 25 31 38 5894 160 Suppose that initially each source is emitting at the uncontrolled level (12 tons a week) so total emissions are 24 tons. Now assume that we want to reduce overall emissions...
When marginal cost of production rises above the average total cost of production, we know that:...
When marginal cost of production rises above the average total cost of production, we know that: A. the firm has economies of scale B. average total cost is decreasing C. marginal cost is negative D. average total cost is increasing Average total cost curves are usually depicted as downward sloping at low levels of output because: A. Average fixed costs are declining B. Opportunity costs decline as output (Q) increases C. Average fixed...
1.2.3.4. 1.With an upward sloping marginal damage cost curve that starts at the origin, total damages...
1.2.3.4.
1.With an upward sloping marginal damage cost curve that starts
at the origin, total damages for 20 units of emissions are equal to
the marginal damage cost of the 20th unit times 20.
A.True
B .False
In the following figure, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is P MSC MPC Social MWTP Private MWTP none of the choices are correct Q3 In the following figure, the...
Question 1 (1 point) 0.5E, the total damage cost of 20 units of For a marginal...
Question 1 (1 point) 0.5E, the total damage cost of 20 units of For a marginal damage function equal to: MD emissions is __.- not possible to tell with the information given $100 $200 $10 Question 2 (1 point) Consider the following graph. What is the socially-efficient level of emissions? The equation for the marginal damages function is: MD 200 E MDC 900 200 MAC 1200 Emissions Question 3 (1 point) Suppose MAC1 100- 10E, MAC2 50 10E and MD...
9) A regulation was applied to reduce SO, on national level. The researchers evaluated MCC and...
9) A regulation was applied to reduce SO, on national level. The researchers evaluated MCC and MDC. functions for the pollutant: MCC 72-SE, MDC - 4E. (20 p) The table shows the emissions of two sources and the marginal abatement costs (MCC 1,000/week) Emissions, tons/week MCC: Source MCC: Source 2 0 2 3 4 5 6 8 10 14 24 0 24810 14 20 25 31 38 58 Suppose that initially each source is emitting at the uncontrolled level (10...
A certain production process generates both external costs and external benefits. The marginal private cost (NPC/and...
A certain production process generates both external costs and external benefits. The marginal private cost (NPC/and marginal external cost (MEC) functions are Increasing. while the marginal private benefit (MPB and marginal external benefit (MEBlfunctions are decreasing. The socially optimal (SO) as well as the individually rational (IR) output level are given by positive and finite numbers. When will the IR output level be higher than the SO one? provided that MEC SO-MEB SO b) provided that MEC SO MEB so...
Suppose the marginal cost for water production in a small country is 20 + Q, and...
Suppose the marginal cost for water production in a small country is 20 + Q, and the demand for water is P = 80 – 2Q, where P is the dollar price and Q is the tons of water produced. Suppose the processing procedure generates pollution, which incurs damage to the environment described by a marginal function of MEC = Q. (The externality does not directly harm producers or consumers.) A.) What quantity will the market tend to without any...
Production Decisions Worksheet (Considering Both Costs and Revenues, What Level of Production will Maximize Profits?) Tubby's...
Production Decisions Worksheet (Considering Both Costs and Revenues, What Level of Production will Maximize Profits?) Tubby's Plumbing Company specializes in installing hot tubs. There is usually enough local business that the company can install a couple hot tubs a day without traveling very far to do so. If they want to do more business in a day, however, they have to travel increasingly far for each installation, incurring higher costs in terms of employee time and gasoline. The total and...
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average...
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
THE KEY PRINCIPLES OF ECONOMCS The Marginal Principle Apply the marginal principle 2.1 A taxi company...
THE KEY PRINCIPLES OF ECONOMCS The Marginal Principle Apply the marginal principle 2.1 A taxi company currently bas nine cabs in its fleet, and its total daily cost is $4.000, If the company added a 10th cab, its daily total cost would be $4,200, or $420 per cab. Adding the 10th cab will increase the daily total revenue by $300. Should the company add the 10th cab? (Yes/No) 2.2 In Figure 3 on suppose the marginal cost of movies is...
2. The table shows the emissions of two sources and the marginal abatement costs (MCC, 1,000/week) Emissions 12 1 10987654320 tons/week MCC. Source! | Ο | 1 | 2 | 3 | 4|ST 8 10T 14T 24|38|70 MCC: Source0 2 4 6 10 14 20 25 31 38 5894 160 Suppose that initially each source is emitting at the uncontrolled level (12 tons a week) so total emissions are 24 tons. Now assume that we want to reduce overall emissions...
1.2.3.4.
1.With an upward sloping marginal damage cost curve that starts
at the origin, total damages for 20 units of emissions are equal to
the marginal damage cost of the 20th unit times 20.
A.True
B .False
In the following figure, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is P MSC MPC Social MWTP Private MWTP none of the choices are correct Q3 In the following figure, the...
Question 1 (1 point) 0.5E, the total damage cost of 20 units of For a marginal damage function equal to: MD emissions is __.- not possible to tell with the information given $100 $200 $10 Question 2 (1 point) Consider the following graph. What is the socially-efficient level of emissions? The equation for the marginal damages function is: MD 200 E MDC 900 200 MAC 1200 Emissions Question 3 (1 point) Suppose MAC1 100- 10E, MAC2 50 10E and MD...
9) A regulation was applied to reduce SO, on national level. The researchers evaluated MCC and MDC. functions for the pollutant: MCC 72-SE, MDC - 4E. (20 p) The table shows the emissions of two sources and the marginal abatement costs (MCC 1,000/week) Emissions, tons/week MCC: Source MCC: Source 2 0 2 3 4 5 6 8 10 14 24 0 24810 14 20 25 31 38 58 Suppose that initially each source is emitting at the uncontrolled level (10...
A certain production process generates both external costs and external benefits. The marginal private cost (NPC/and marginal external cost (MEC) functions are Increasing. while the marginal private benefit (MPB and marginal external benefit (MEBlfunctions are decreasing. The socially optimal (SO) as well as the individually rational (IR) output level are given by positive and finite numbers. When will the IR output level be higher than the SO one? provided that MEC SO-MEB SO b) provided that MEC SO MEB so...
Production Decisions Worksheet (Considering Both Costs and Revenues, What Level of Production will Maximize Profits?) Tubby's Plumbing Company specializes in installing hot tubs. There is usually enough local business that the company can install a couple hot tubs a day without traveling very far to do so. If they want to do more business in a day, however, they have to travel increasingly far for each installation, incurring higher costs in terms of employee time and gasoline. The total and...
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
THE KEY PRINCIPLES OF ECONOMCS The Marginal Principle Apply the marginal principle 2.1 A taxi company currently bas nine cabs in its fleet, and its total daily cost is $4.000, If the company added a 10th cab, its daily total cost would be $4,200, or $420 per cab. Adding the 10th cab will increase the daily total revenue by $300. Should the company add the 10th cab? (Yes/No) 2.2 In Figure 3 on suppose the marginal cost of movies is...
Most questions answered within 3 hours.
-
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 42 minutes ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 2 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 3 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 3 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 6 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 6 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 6 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 7 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 7 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 7 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 7 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 7 hours ago