cenari A farmer, Kgabo Phaka, is known for his high-quality cattle and he is one of the primary suppliers of steaks and fillets to the Woolworths stores in his area. According to Kgabo, the secret to great steaks is happy cattle. His cattle are free-range cattle, as they enjoy their lives in the field. The field provides plenty of food rich in nutrients for his cattle to graze on daily. Kgabo explains that a devastating fire destroyed most of his field, leaving his cattle without food. The farmer is now forced to divert resources to buying food to feed his cattle. The food does not provide the same nutrients as the field, therefore it takes much longer for the cattle to meet the requirements to be sold for meat. Kgabo explains that his ability to supply healthy cattle decreased significantly, leaving him with higher input costs and decreased revenue. Using a graph, illustrate and explain the devastating impact of the fire on the equilibrium price and quantity in the market for steaks and fillets to the Woolworths

cenari A farmer, Kgabo Phaka, is known for his high-quality cattle and he is one of the primary suppliers of steaks and fillets to the Woolworths stores in his area. According to Kgabo, the secret to great steaks is happy cattle. His cattle are free-range cattle, as they enjoy their lives in the field. The field provides plenty of food rich in nutrients for his cattle to graze on daily. Kgabo explains that a devastating fire destroyed most of his field, leaving his cattle without food. The farmer is now forced to divert resources to buying food to feed his cattle. The food does not provide the same nutrients as the field, therefore it takes much longer for the cattle to meet the requirements to be sold for meat. Kgabo explains that his ability to supply healthy cattle decreased significantly, leaving him with higher input costs and decreased revenue. Using a graph, illustrate and explain the devastating impact of the fire on the equilibrium price and quantity in the market for steaks and fillets to the Woolworths

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
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Hubert and Kate are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley (BUSHELS PER ACRE) Alfalfa (BUSHELS PER ACRE) Hubert 40 8 Kate 28 7
Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…