The market for plasticans is perfectly competitive. Market Supply is given by Q=8P and Market Demand is given by Q=422-3P. Each extra unit of plastican produced imposes a negative externality of $6. Implement the optimal Pigouvian tax/subsidy that implements the efficient outcome. What is the Producer Surplus in the equilibrium with the tax? Enter a number only, no $ sign. 5,395.82

The market for plasticans is perfectly competitive. Market Supply is given by Q=8P and Market Demand is given by Q=422-3P. Each extra unit of plastican produced imposes a negative externality of $6. Implement the optimal Pigouvian tax/subsidy that implements the efficient outcome. What is the Producer Surplus in the equilibrium with the tax? Enter a number only, no $ sign. 5,395.82

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 8QP

See similar textbooks

Similar questions

Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
The market for plasticans is perfectly competitive. Market Supply is givenby Q=7P and Market Demand is given by Q=455-2P. Each extra unit ofplastican produced imposes a negative externality of $8. Implement theoptimal Pigouvian tax/subsidy that implements the efficient outcome.
The market for plasticans is perfectly competitive. Market Supply is givenby Q=5P and Market Demand is given by Q=373-3P. Each extra unit ofplastican produced creates a positive externality of $6. Implement theoptimal Pigouvian tax/subsidy that implements the efficient outcome.What is the Consumer Surplus in the equilibrium with the tax/subsidy?
The market for plasticans is perfectly competitive. Market Supply is givenby Q=3P and Market Demand is given by Q=321-2P. Each extra unit ofplastican produced imposes a negative externality of $7. What is the(absolute value of) Deadweight Loss due to the externality?
Market Supply is given by P=2Q and Market Demand is given by P=189-2Q. Each extra produced creates a negative externality of $4. Implement the optimal Pigouvian tax/subsidy that implements the efficient outcome. Then, what is the Consumer Surplus in equilibrium with the tax or subsidy?
The market for plasticans is perfectly competitive. Market Supply is givenby Q=4P and Market Demand is given by Q=455-3P. Each extra unit ofplastican produced imposes a negative externality of $Q. What is theefficient quantity?
The market for plasticans is perfectly competitive. Market Supply is givenby Q=3P and Market Demand is given by Q=469-3P. Each extra unit ofplastican produced imposes a negative externality of $9. What is the totalsurplus at the market quantity?
The market for plasticans is perfectly competitive. Market Supply is givenby Q=9P and Market Demand is given by Q=394-2P. Each extra unit ofplastican produced imposes a negative externality of $6. What is the totalsurplus at the efficient quantity?
The market for plasticans is perfectly competitive. Market Supply is givenby Q=6P and Market Demand is given by Q=499-2P. Each extra unit ofplastican produced imposes a negative externality of $8. What is the totalcost of the externality at the market equilibrium?
The market for used phones is perfectly competitive without externalities. Market demand is Q=235-2P and Market Supply is P=2Q+11. Suppose the Marginal Cost (MC) increases by $10 at every quantity. What is market Producer Surplus after this increase in MC? (Note: this question is not asking for the change in PS, just the PS after the increase in MWTP) Enter a number only, drop the $ sign
A market is perfectly competitive. Market Supply is given by Q=4P and Market Demand is given by Q=296-2P. Each extra product produced imposes a negative externality of $Q. Implement the optimal Pigouvian tax/subsidy that implements the efficient outcome. Determine the total tax revenue the government earns with this tax or subsidy.
The market for plasticans is perfectly competitive. Market Supply is givenby Q=2P and Market Demand is given by Q=385-2P. Each extra unit ofplastican produced imposes a negative externality of $6. What is themarket quantity?