The production of good x creates a negative externality on firms producing good y. Total costs are c(x) = x² and c(x, y) = y² + 20x. Prices are px = 90 and py = 20. The government introduces a Pigouvian tax of t dollars per unit of %3D good x. Calculate total revenues raised by this tax.
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- Which of these is a negative production externality? An airline manufacturer must hold up production of a plane at great cost due to delays in its global supply chain. A cereal manufacturer suffers losses due to a drought and unexpected increases in market prices of grains that it uses in its cereals. O Consumers complain to the wrong regulators about price gouging in gasoline markets. A producer of lead for batteries that are used nationwide emits noxious gases in its factory town and local people are getting sick. Thch SaveExplain a positive and negative externality that you have recently consumed. Please relate your answer to the characteristics of elasticity. Why does the government have to get involved when an externality is present in the market?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
- Add comments, discussion or calculations to your PART TWO document as directed. The market demand and supply curves for Quebec maple syrup are given by Qd = 2000 – 45P Q, = 35P+ 1000 where the quantities Q are in 1000s of gallons per year. The government of Quebec, seeking additional revenue sources, imposes a $2 per gallon tax on all maple syrup sold in the province. IN YOUR PART TWO DOCUMENT, your work in calculating the size of the deadweight loss of this tax on the market, and drawing relevant pictures. HERE answer the following question: How much deadweight loss will there be as a result of the tax?The market for plasticans is perfectly competitive. Market Supply is given by Q=5P and Market Demand is given by Q=462-2P. Each extra unit of plastican produced imposes a negative externality of $6. What is the (absolute value of) Deadweight Loss due to the externality? Enter a number only, drop the $ sign. Do NOT include a negative sign.Consider a competitive market with negative externalities and a firm in this market. To force this firm to consider these negative externalities, the government may impose a quantity tax equal to -__-- After imposing this tax this firm will produce at a level for which_____. MSC , P=MDC. O MC, P=MSC. MDC, P=MSC. None of the answers are right. MAC , P= MC.
- Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, what price per subscription should it charge per month?A market for a good contains a negative production externality. The following functions describe the market: MPB = 171 - 0.15Q MPC = 13 + 0.1Q MEC = 19 Currently there is no tax. Calculate the benefit if the government adds a tax of $8 per unit.Inverse demand for washing machines is P = 27-.5Q and inverse supply is P = 7+.5Q. Each washing machine has a 3 unit externality associated with it. Find the market equilibrium, damages, deadweight loss, consumer, producer, and total surplus. Submit your work
- Which of the following correctly describes a subsidy? Describes a Subsidy Drag appropriate answer(s) here a way of making consumption cost-free a consumption incentive Does Not Describe a Subsidy a means of internalizing positive externalities a tax on producers Drag appropriate dessver5) bore You a Que QueConsider a competitive market for Good Y. This good involves a negative consumption externality. i) Is this market efficient? Why? ii) Imagine that the competitive market for Good Y consolidates and becomes a monopoly. Does this make the market more, or less efficient relative to the situation above? Include a graph to make the point clearer.Consider Good A. There are NO externalities associated with Good A. a.) Draw a ( general- you don’t need any specific numbers) graph that shows the deadweight loss that would result if a tax is placed on Good A. b.) Suppose that, after the tax is placed on Good A, the quantity consumed ( by all customers) is equal to 90,000 units of Good A. Is the efficient level of output in the market for Good A greater than 90,000 , less than 90,000 , or equal to 90,000 ( just circle your answer ; you don’t have to explain)? (7) The efficient level is greater than 90,000 The efficient level is less than 90,000 The efficient level is equal to 90,000
