2. A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 – Pwhere P is the price of almonds and Q is the total quantity of almonds. The private totalQ?The production of almondscost for the unregulated market is C50 + 80Q +Q²First, solve for the2creates an externality where the total external cost is E =Pigouvian tax (per unit of output of almonds) that results in the social optimum. Supposethat one company, MegaAlmonds, becomes a monopolist in the production of almonds.What is the optimal tax that should be placed on the almonds in this case?

Here we calculate the following tax and production of the given in formation m so calculation of the…

A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 - ere P is the price of almonds and Q is the total quantity of almonds. The private total Q? The production of almonds 2 t for the unregulated market is C = 50 + 80Q + Q? First, solve for the 2 ates an externality where the total external cost is E = ouvian tax (per unit of output of almonds) that results in the social optimum. Suppose t one company, MegaAlmonds, becomes a monopolist in the production of almonds. at is the optimal tax that should be placed on the almonds in this case?

A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 - ere P is the price of almonds and Q is the total quantity of almonds. The private total Q? The production of almonds 2 t for the unregulated market is C = 50 + 80Q + Q? First, solve for the 2 ates an externality where the total external cost is E = ouvian tax (per unit of output of almonds) that results in the social optimum. Suppose t one company, MegaAlmonds, becomes a monopolist in the production of almonds. at is the optimal tax that should be placed on the almonds in this case?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...

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Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. QS1 is the quantity supplied without social costs. QS2 is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity?
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel efficient cars are the same as the marginal social benefits. Discuss one wags.r that the government cans ï¬‚y to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is flying to affect production through costs, net benefits.
Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost?
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Suppose that Sonys R. Is this a private or social benefit?