Which are the two key ’problems’ encountered in aggregating on the consumer side, and why it not occurs on the producer side ? Pls short answer in 15-20 Sentences
Q: Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92…
A: When firm produces goods it doesn't consider positive externalities into account. And when firm…
Q: International Agreements on Trade and the Environment a. In panel A, Home enjoys positive production…
A: Externalities occurs when the consumption or production of a good has an influence on parties who…
Q: 15 ) Based on the data in the above table , to assure that the efficient amount is produced the…
A: Free market equilibrium is where marginal private cost is equal to marginal private benefit.…
Q: A global-positioning anti-theft device installed by one car owner can produce a positive spillover…
A: The externalities refer to the impact on the third party which can be a positive impact or a…
Q: 7. The economy has two firms. Firm 1 produces an output x that it sells in a competitive market and…
A: Cost of production of firm 1 = x2/2 Cost imposed by firm 1 on firm 2 = x Cost of production of firm…
Q: 3. Following are portions of the demand curves of three individuals for the water quality in a small…
A: Socially efficient level is that level where marginal cost is equal to marginal willingness to pay…
Q: 12) Illustrate in Figure 1 the firm's profit when its divisions are allowed to buy and sell in the…
A: Lets assume that the market is perfectly competitive and when demand is equal to supply, then in a…
Q: Define the economic efficiency. Explain in detail.
A: When every scarce resource in an economy is utilized and divided among producers and consumers in a…
Q: Competitive Markets and Externalities 1.What impact do policy interventions have on the supply and…
A: Answer- "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: Total Cost of Elir Two Un Firm (Dollars) Firm X Firm Y Firm Z Method 2: Tradable Permits Meanwhile,…
A: Disclaimer: please send the second part of the question completely, here we solve the first part for…
Q: 1. Consider a competitive market where daily supply and demand are QP(P) = 15 -; and Q°(P) = 2P,…
A: Elasticity measures the responsiveness of quantity to change in price level. Equilibrium occurs…
Q: What are the three possible results (or findings) from the use of control charts?
A: The control chart is basically a tool to monitor the quality or process for a potential change in a…
Q: IBM faces two types of buyers for the printers they produce. High-valuation consumers (e..g.…
A: Solution: In this question, we are given two total valuation functions , one for high valuation…
Q: Consider the case of innovating vaccines without patents (in a perfectly competitive market) (a)…
A: Externalities refer to the cost generate or benefits received by the 3rd party, wherein such a 3rd…
Q: Give atleast three (3) scenarios for rivalry. Consumer-Producer Rivalry Consumer–Consumer Rivalry…
A: Customer Producer Rivalry. – Consumers endeavor to find low costs, while makers endeavor to charge…
Q: 8. [Explain what is meant by the term "market failure" by giving two major types of such failures. A…
A: The markets are the places for the interaction of the buyers of goods, and services and the sellers…
Q: Figure: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost…
A: The Answer is given below
Q: 5. Public Goods Consider 2 individuals, Arrow and Becker, who have the following demand curves…
A: Given information There are 2 consumer for parks Arrow and Becker Demand curve for Arrow QA=4-PA…
Q: Product X is produced with a constant marginal cost 12. Consumption of Q units per consumer provides…
A: PMB=26-2Q MC=12 No. of consumers=40
Q: A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat…
A: C=30Wc−1.5W2c B=74WB−2W2B Wc+WB=8294The cost of Cereal is $1 and the cost of Bread is $0.5.…
Q: he market for pencils in Eldham is perfectly competitive with no externalities. If market demand is…
A:
Q: Aside from greenhouse gas emissions [e.g., carbon dioxide (CO2)], vehicles emit pollutants such as…
A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: Define externality. Also explain negative and positive externality.
A: Externalities occur when the production or consumption of a good has an impact on third parties who…
Q: Marginal Benefit (MB) to Firm MBBETA MBALPHA Tax = $100 25 50 75 100 Emissions (tons) Figure 16.5…
A: Here, two firms are operated in an industry named as Alpha and Beta, and their marginal benefit from…
Q: 1. Decide whether the following are true, false, or uncertain and thoroughly explain your reasoning.…
A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question and…
Q: A vertically integrated firm has 2 divisions; upstream and downstream divisions. The upstream…
A: Optimal transfer price is used to overcome the problem of double marginalization. It should be equal…
Q: 1.Explain specifictly how to overcome and solve the major problem of Mcdonal's company from…
A: Answer - "Thank yoru for submitting the questions.But, we are authorized to solve one question at a…
Q: A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat…
A: We will use single variable maximisation techniques to solve this question.
Q: a. On the basis of the three individual demand schedules below, and assuming these three people are…
A: A public good is a good that is provided free of cost to all the members of the society without any…
Q: Figure 9.9 shows the demand and supply of a product in a competitive market. FIGURE 9.9 $10 2 10 20…
A: If government aims to increase output and increase the price too. Then this is possible only when…
Q: Figure 9.9 shows the demand and supply of a product in a competitive market. FIGURE 9.9 $10 2 10 20…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: 4. We have 72 free units to distribute among 100 agents. Their willingness to pay is p. The function…
A: The traditional answer to the problem of fair and efficient allocation of goods among actors is…
Q: 10. Jones and Smith are neighbors. Jones runs a marijuana shop out of his home. Smith, a doctor,…
A: When an action of an individual imposes a cost on other individual without compensating him for…
Q: Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive…
A: Monopolistic competition is the market where seller sale differentiated products and they have…
Q: Assume that consumers view tax preparation services as undifferentiated among producers, and that…
A: The correct answer is given in the second step.
Q: Rival in Consumption? Yes No Yes A B. Excludable? No D Emma's use of good x does not affect anyone…
A: A good is classified as club good, public good, private good or common resource depending on the…
Q: V surplus is the difference between the highest price a consumer is willing to pay and the price the…
A: Consumer surplus is the area above the price line and below the demand curve. It shows the…
Q: Social Cost Supply 3.00 2.80 2.07 1.50 Demand 24 30 38 50 QUANTITY (Units oftobacco) Refer to Figure…
A: In the question above, a graph is given which shows : Price of Tobacco on Y axis Quantity of…
Q: Question: Define externalities. Discuss how the presence of externalities might affect the…
A: Natural resources and public health are examples of externalities. A corporation that pollutes the…
Q: How market equilibrium is found with Pollution Abatement Subsidy? Also draw graph and interpret it.
A: Pollution abatement subsidy refers to the subsidy given on those inputs of production which leads to…
Q: bread(B) with raw wheat (W). The production functions are: Cereal: C = 28WC – 1.5WC2 Bread: B = 65WB…
A:
Q: Part A [Word limit: 400] Consider a two-firm model with a negative production externality. Let x;…
A: Given information P1=100 P2=150 Both firm are working into perfect competitive market. Total…
Q: Aside from greenhouse gas emissions [e.g., carbon dioxide (CO2)], vehicles emit pollutants such as…
A: An externality occurs when the action of one person affects the others in society. There are two…
Which are the two key ’problems’ encountered in aggregating on the consumer side, and why it not occurs on the producer side ?
Pls short answer in 15-20 Sentences
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat bread(B) with raw wheat (W). The production functions are: Cereal: C = 30WC – 1.5WC2 Bread: B = 63WB – 2WB2 Constraint: WC + WB = 9,820 Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 9,820 units of raw wheat available. How much wheat should go to the cereal (WC)? Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.(J) Suppose the production process of a particular good creates a negative externality such as pollution. Other things being equal, would society be better off if this good were produced by a perfectly competitive market or by a monopoly? a. Society would be better off if this good were produced by a perfectly competitive market, because a perfectly competitive market responds to consumers' desires in the long run b. Society would be better off if this good were produced by a perfectly competitive market, because a perfectly competitive market will produce the quantity where Marginal Revenue equals Marginal Cost c. Society would be better off if this good were produced by a monopoly,Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers. (e) If this market were a monopoly with identical cost conditions, would the monopoly’s profit-maximizing quantity be greater than, less than, or equal to QC?
- Table 17-1Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below: Quantity(in gallons) Price Total Revenue(and Total Profit) 0 $60 $0 100 55 5,500 200 50 10,000 300 45 13,500 400 40 16,000 500 35 17,500 600 30 18,000 700 25 17,500 800 20 16,000 900 15 13,500 1,000 10 10,000 1,100 5 5,500 1,200 0 0 Refer to Table 17-1. If this market for water were perfectly competitive instead of…Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.15 ) Based on the data in the above table , to assure that the efficient amount is produced the government can A ) tax or subsidize the suppliers $2 per unit. B ) tax suppliers $3 per unit. C ) subsidize the suppliers $3 per unit. D ) tax suppliers $4 per unit.
- Part D E F needed b) Ana also reads that climate change is caused by carbon emissions from air travel. Two airlines run flights between two cities, Air A and Air B. The government has said that the airlines can produce 100 units of carbon emissions between them, under a carbon permit scheme, and should decide how to split the 100 units between them. Air A and Air B have the same operating costs and the same costs of reducing the amount of carbon that they produce per flight.Say Air A has been operating on the route for over 50 years and the government decides to give all the permits to Air A (based on its long use of the route). Air A offers a proportion R of the 100 units of permits to Air B and Air B can accept the offer or reject it and not fly on the route.• How will the other parameters of the model as discussed in this module affect the value of R* at which Air B accepts the offer?• Say that the government gives the permits to Air A for 5 years, and will gives them to Air B for…A vertically integrated firm has 2 divisions; upstream and downstream divisions. The upstream division produces chemical Y, whose average total cost is ATCU = 10 + 2QU, where QUis the quantity of Y. The downstream division has its own average total cost of ATC = 20 + 3Q where Q is the quantity of the firm’s final product. There is no external market. What is the transfer price (PU)? Question 55 options: PU = 10 + 2QU. PU = 10 + 4QU. PU = 20 + 3QU. PU = 20 + 6QU. None of the above.Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive profit in the short run, why might this profit become zero in the long run? 1B) If MU Café wants to keep the profit positive in the long run, what can it do? Provide ONE suggestion and briefly explain. 1C) What externality problem do you expect in the market for plastic bags? How does the government correct the inefficiency of the market? Explain in detail and diagram.
- Question: Define externalities. Discuss how the presence of externalities might affect the allocation of resources by a purely competitive industry.Suppose that only one firm, Big Foot, sells footballs in the country and international trade of footballs including both exporting and importing is prohibited by government due to Big Foot’s successful lobby. The following equations indicates Big Foot’s market demand and total cost:• Demand: P = 5-0.5Q• Total Cost: TC = 1.5 + 0.5Q + 0.25 Q2where Q is quantity (in 1000) and P is the price measured in dollars. (i) Determine how many footballs Big Foot chooses to produce, the price it will set for its product and its expected profit. Illustrate your analysis with a propermarket diagram.(ii) Evaluate the size of deadweight loss cause by monopoly status of Big Foot. Suppose that the parliament passed a new law that not only allows everyone to sell footballs but also opens international trade of footballs. Suppose further that the market demand in the country remains the same while the price of football in the competitive global market is $3 including shipping and importation fee. Analyse…"Since the occurrence of COVID-19 health crisis in Gaza in early 2020, severalexternalities existed during the partial, and complete economic lockdown."Answer the following questions: b. Give an example on an externality (domestic or international) that occurredduring COVID-19 economic crisis.
