Teascent is selling candles in Pleasantville. The incremental costs of wax, wick, and other materials for a candle are $0.80. The daily price- response function in Pleasantville is d(p) = 1100C - 980p. Teascent practices price differentiation and sells its candles for $5 to price-sensitive customers with coupons, and for $7 to quality-

Teascent is selling candles in Pleasantville. The incremental costs of wax, wick, and other materials for a candle are $0.80. The daily price- response function in Pleasantville is d(p) = 1100C - 980p. Teascent practices price differentiation and sells its candles for $5 to price-sensitive customers with coupons, and for $7 to quality-

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2.2CE

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. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC=40P Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR=1000-10P How much pollution reduction should Appalachian Coal Mining undertake?
Researchers in Westland and Eastland are developing better treatments for lycanthropy, which afflicts no other region in the world. Inhabitants of both countries benefit from better treatments regardless of which country conducts the research. The country specific marginal benefit from the research differs, however, due to differing prevalence of the disease as well as different trade-offs with respect to other potential uses of resources. In Westland the marginal benefit at Q researcher-years is P d W (Q) = 96 − 12Q and in Eastland P d E(Q) = 60 − 10Q, where the benefit is measured in Large Monetary Units (LMU). The cost of a researcher-year is a constant 20 LMUs in both countries. (a) What is the efficient amount of research? (b) Suppose one of the countries jumps ahead and commits to provide exactly half of the efficient amount in part 3a. Taking this as given, how much will the other country then provide? Consider both cases of either Westland or Eastland being the first mover. (c)…
Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Please provide the correct answer. Thank you!
Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake?
Suppose that under the United States-Canada Air Quality Agreement, both countries agree to a combined 30 percent SO2 abatement standard. Further assume that the following SO2 abatement cost functions have been estimated by each country: TACUS = 500 + 1.5(AUS)2 MACUS = 3 AUS TACCAN = 1000 + 3(ACAN)2 MACCAN = 6 ACAN A. If the countries implement a uniform abatement standard, find the resulting values of TAC and MAC for each nation. Based on these values, is there an economic incentive the two nations to participate in an emissions trading program? Explain. B. Assuming a trading program is enacted, find the cost savings associated with a cost-effective abatement solution? C. What must be the price of a tradeable permit to achieve the cost-effective abatement allocation?
The marginal benefit of being able to emit a ton of sulfur dioxide emissions for two firms are given by:MBX = 1000 – ( Ex / 2 )MBY = 600 – ( Ey / 3 ) Note that these marginal benefit figures can be interpreted as marginal cost of abating emission down to levels Ex and Ey.Government regulators want to reduce total sulfur dioxide emissions to a total of 1800 tons.a) If the government imposes the same standard of 900 tons maximum emissions on both firms what would be the total cost of abatement (calculated as the aggregated marginal benefits forgone)? b) If the government distributed 900 tradable pollution permits (one ton each) to each firm what would be the final allocation of these permits after the firms trade them?c) What would be the total cost of abatement in this latter case?
A pharmaceutical company Eureka Bio has discovered a corona vaccine that can be produced at constant marginal cost of R10. The company has entered into dosage demand of QA=200-PA, and country B has dosage demand QB = 160-PB. a. Suppose that country A has high infection rates, determine the price that Eureka Bio can charge country A and B to prevent a resale between countries. b. If Eureka Bio is the only pharmaceutical company that was successful in developing vaccines, determine the dosage that will be sold to both countries. What will be Eureka's profit?
Consider a uniformly mixed pollutant. If all of the polluters have different individual marginal abatement cost functions, then it wll not be possible to design a cost effective policy. Select one: O a. True O b. False
Answer asap please Suppose that a special interest group makes up 10% of the overall population. If a new proposal stands to generate $2 million in additional benefits to the group, the group will: Group of answer choices always support this proposal, since the costs are diffused over the entire population. never support this proposal if the costs are greater than $2 million. support this proposal only if the costs are less than $2 million. support this proposal only if the costs are less than $200,000.
A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at constant marginal cost of R10. The company has entered into offtake dosage agreements with Country A and B. Country A has a dosage demand of QA=200-PA and Country B has dosage demand of QB=160-PB(a) Suppose that Country A has high infection rates, determine the price that Eureka Bio can charge Country A and B to prevent a resale between countries.(b) If Eureka Bio is the only pharmaceutical company that was successful in developing vaccines, determine the dosage that will be sold to both Countries. What will be Eureka’s profit? (c) If World Health Organization introduces a regulation on the price of dosages, calculate the price, profits and dosages that Eureka can charge. please note that this is calculations and not theory based questions. Please help with a and c
A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at constant marginal cost of R10. The company has entered into offtake dosage agreements with Country A and B. Country A has a dosage demand of QA=200-PA and Country B has dosage demand of QB=160-PB(a) Suppose that Country A has high infection rates, determine the price that Eureka Bio can charge Country A and B to prevent a resale between countries.(b) If Eureka Bio is the only pharmaceutical company that was successful in developing vaccines, determine the dosage that will be sold to both Countries. What will be Eureka’s profit? (c) If World Health Organization introduces a regulation on the price of dosages, calculate the price, profits and dosages that Eureka can charge. please answer a and c
A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at a constant margin cost of $10. The company has entered into off take dosage agreement with Country A and B. Country A has a dosage demand of QA = 200 - PA and Country B has a dosage demand QB = 150 - PB. (a) Suppose that Country A has higher infection rates, determine the price that Eureka Bio can charge Country A and B to prevent a resale between countries. (b) If Eureka Bio is the only pharmaceutical company that was successful in developing vaccine, determine the dosage that will be sold to both countries. What will be the Eureka's profit ? (c) If World Health Organization introduces a regulation on the price of dosage, calculate the price, profits and dosage that Eureka can charge.