Suppose the inverse demand curve on ore is given by P = 72 - 0.44 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 6 q1. The marginal cost of obtaining ore through recycling is MC2 = 14 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the answer is 45.34% then enter 45.34)? Please answer in short

Suppose the inverse demand curve on ore is given by P = 72 - 0.44 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 6 q1. The marginal cost of obtaining ore through recycling is MC2 = 14 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the answer is 45.34% then enter 45.34)? Please answer in short

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.3P

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Suppose the inverse demand curve on ore is given by P = 96 - 0.72 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 7 q1. The marginal cost of obtaining ore through recycling is MC2 = 18 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the answer is 45.34% then enter 45.34)?
Suppose the inverse demand curve on ore is P = 95 - 0.19 Q. Ore can obtained through a recycling program, or mining. The marginal cost of mining is MC1 = 6 q1, while the marginal cost of obtaining ore through recycling is MC2 = 11 + 2 q2. What % of total demand is satisfied by recycled ore ?
Apparel manufacturer Nike produces high-end and low-end versions of their running shirts. They estimate that the demands for their products are given by: High-end shirts: P = 130 - 2QH , andLow-end shirts: P = 80 - QL, where Q is measured in 1000 shirts, "H" denotes High-end and "L" denotes Low-end Both types of shirts are produced on the same production line in the same facility, so the marginal cost of producing and selling both types of shirts is constant at $30. Supposing that (i) the two demands are independent and (ii) Nike can produce and market the shirts such that the high- and low-end markets are successfully segmented, what are the profit-maximizing prices Nike would charge for each version?Answer Options:a) by the midpoint rule, PH = $65 and Pl = $40b) PH = $80 and PL = $55c) Nike will set price equal to marginal cost for both versionsd) PH = $130 and PL = $80
Predicting Changes in Equilibrium Price and Quantity Suppose that the market demand for farmed salmon is Qd = 12 – p and the market supply of farmed salmon is Qs = 9.6 + 0.5p – 0.2pt, where Q is the quantity of salmon in millions of tons per year, p is the price of salmon in dollars per pound, and pt is the price of tilapia in dollars per pound. The supply function demonstrates that the facilities that are used to farm salmon are also suitable for farming tilapia. a) Use a market diagram to demonstrate that the equilibrium price and quantity of salmon is implicitly a function of the price of tilapia. That is, show how a change in the price of tilapia will impact the market for farmed salmon. (No need to use numbers here, just sketch and explain.) b) Using the supply and demand functions, derive the relationship between the price of tilapia and the equilibrium price and quantity of salmon. You should ultimately calculate and . Check your work by calculating the impact of an increase in…
The per-week (inverse) demand for use of the Øresund Bridge between Denmark and Sweden is P = 13 − 0.15Q during peak traffic periods and P = 10 − 0.1Q during off-peak hours, where Q is the number of cars crossing the bridge in thousands and P is the toll in euros. If the marginal cost of using the bridge is MC = 5 + 0.2Q, what is the optimal peak load toll and off-peak load toll for crossing the bridge?
Consider a nonrenewable resource that can be consumed either today (period 1) or tomorrow (period 2) and has a finite supply of 15 units. Assume the inverse demand for the resource in both periods is: P_1 = 100 - 5Q_1 P_2 = 100 - 5Q_2 Assume the marginal cost of extracting the resource is constant at $25 and the social discount rate is 10 percent (r = .10). If the social discount rate is decreased to 5% (r = .05), how much less of the resource would be consumed in the first period, assuming a dynamically efficient allocation? Please report your answer out to at least two digits (e.g., 3.24). Hint: Solve for the efficient allocation of the resource at r = .1 and then at r = .05. The difference in period one consumption is your answer.
A private golf club has two types of members. Serious golfers each have the demand curve Q = 250 - 10P, where Q represents the number of rounds played per year and P is the per- round price. Casual golfers have the demand curve Q = 100 - 10P. The club has 5 serious and 60 casual golfing members and faces a constant marginal cost and average cost of $ 5 per round played by either type of member. The club cannot distinguish high demanders from low demanders but is considering deploying a 2-part tariff pricing system? Specifically, the club is considering a per-unit price of $5 and a per-unit price of $6. What should they do and what are the profits they will earn? Be very clear in how you arrive at your answer.
Suppose both cooperatives are price-takers; with PG=12 and PF =10 being the market prices of gold and fish respectively. The cost of producing G units of gold is cg(G,x)=G2+(x−4)2; where x is the quantity of mercury effluent discharged into the dam. The cost of producing F units of fish is cF(F,x)= F2 + xF ; where cF(F,x) is an increasing function of x. a) Determine the profit maximizing level of gold output, profit and level of mercury effluent discharged into the dam. Comment and explain your results. b) What is the fishing cooperative’s profit maximizing level of fish output and profit? Explain your results. c) Suppose the two cooperatives were merged to operate as a single firm; determine the socially optimal level of gold and fish output, mercury effluent and profit. Explain, comment on and contrast your results with those obtained in a and b above. d) Suppose property rights to the dam water are created and assigned to the fishing cooperative. Does this induce efficiency and…
A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D1=1000-2P1. The demand curve for customers that are more price-sensitive is D2=1000-3P2. The cost of maintaining each cabin is $50. If one single price is charged, what is the price to maximize the profit? What is the profit? If the differential prices are charged to each customer segment, what is the price for each customer segment respectively? What is the total profit? What is the profit increase by charging different prices to each customer segment compared with one single price?
We obtain the following demand curve of beef in a market: Q = 44506.941 - 3338.553 ln(P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know the average of P is 8.781 and the average of Q is 13016.956. Based on this information, if the price increases by 1 dollar, the quantity demanded decreases by ____%. the answer is 2.921, I need the step by step solution to get the answer
A toy company is trying to determine the optimal price for their weekly supply to meet the demand for a toy they are about to release. They estimate that the supply function follows p= 0.006q^2 + 0.14q+ 8.62 and the demand function follows p= -1.25q+ 65 , where p is the price of the toy (in dollars) and q is the weekly quantity of the toy (in hundreds). If the company tries to sell the toy for $24, will there be a shortage or surplus of toys each week?
The FIA Formula 1 World Championship to be held during the 2021 Mexico City Grand Prix has a total cost function equal to CT = Q33 + Q2 + 125Q and an inverse demand function of P = 200−2Q. Now suppose there is a new company managing this event, so the total cost function becomes CT = 4Q. This new company intends to sell at two different prices depending on the place that the spectators occupy at the Hermanos Rodríguez Autodrome. For the Red Zone Boxes. The estimated demand will be q1 = 32−12p1 and for the Green Zone Boxes It will be q2 = 42 − p2. The number of tickets sold for the Red Zone and Green Zone will be: 15; 84 23; 16 15; 19 33; 45