Fertilizer supply is explained by the following equation: ?? = 3,000? where ?? is the supply per year and ? is the price of fertilizer per ton. Demand for fertilizer is explained by: ?? = 500,000 - 20,000? where tons there is a lot of fertilizer demanded every year. The marginal external cost of $ 30 is associated with the production per ton of fertilizer due to pollution associated with fertilizer production. Answer the following questions and explain your answer by showing your work. a. Assuming that fertilizer is sold in a competitive market, what is the market price?
Fertilizer supply is explained by the following equation: ?? = 3,000? where ?? is the supply per year and ? is the price of fertilizer per ton. Demand for fertilizer is explained by: ?? = 500,000 - 20,000? where tons there is a lot of fertilizer demanded every year. The marginal external cost of $ 30 is associated with the production per ton of fertilizer due to pollution associated with fertilizer production. Answer the following questions and explain your answer by showing your work. a. Assuming that fertilizer is sold in a competitive market, what is the market price?
Chapter8: Market Failure
Section: Chapter Questions
Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...
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. Fertilizer supply is explained by the following equation: ?? = 3,000? where ?? is the supply per year and ? is the price of fertilizer per ton.
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