User Account

All Pages

Market for political advertising during election campaign

Assignment Help Macroeconomics
Reference no: EM131056409

Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC = 200 + 2q where Q is the quantity of advertisements, and the private marginal benefit (demand) curve is PMB = 1000 - 3q. The marginal negative production externality e in the market is e=3q (note that the externality from producing an additional advertisement increases with the number of advertisements). Which of the following statements is true?

a. The socially efficient level of output is q=200, which suppliers will produce if a production tax of 600 per unit is imposed per political advertisement.

b. The socially efficient level of output is q=100, which suppliers will produce if a production tax of 300 per unit is imposed per political advertisement.

c. The socially efficient level of output is q=160, which suppliers will produce if no taxes are imposed in this market.

d. The deadweight loss in the market equilibrium is $18000.

e. The deadweight loss in the market equilibrium is $9000.

Reference no: EM131056409

Questions Cloud

Play around with prices is a bad idea : Read the article "Play around with prices is a bad idea" and answer the following questions:
Operating at full employment equilibrium : Consider an economy that is operating at full employment equilibrium. Graphically illustrate the effect of an increase in government spending (G) on the price level and the level of GDP in the short run.
Write a program that uses epoll_create() to create an epoll : When, as in this case, epoll_wait() is given an epoll file descriptor with an empty interest list, what happens? Why might this be useful?
Data in the accompanying table show the number of appliances : Circuit board capacitors. Use the data of Table 2.1, but omit the data on board 4. (a) Calculate the pooled estimate  of the assumed common value of the binomial proportion.
Market for political advertising during election campaign : Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC = 200 + 2q where Q is the quantity of advertisements, and the private marginal benefit (demand) curv..
Measurement problem in calculating gdp : A report by the World Bank noted the following: "Informal economic activities pose a particular measurement problem in calculating GDP, especially in developing countries, where much economic activity may go unrecorded".
What evidence might you bring to the hearing : A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
Write a program that uses this scheme with select() : One solution is to fork a separate child process that copies each message from the queue to a pipe included among the file descriptors monitored by the parent. Write a program that uses this scheme with select() to monitor input from both the term..
Total quantity of taxi trips supplied by licensed taxi : In this equation, P is the price of a taxi trip, and Q is the total quantity of taxi trips supplied by licensed taxi companies. The marginal cost, to a taxi company, of supplying a taxi trip is $18. A taxi company's only ?xed cost is the cost of p..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Find out the the forecasts for 3rd quarter

Using the three quarters moving average, find out the the forecasts for 3rd quarter 2010, 4th quarter 2010, and 1st quarter 2011. Use the given data, actual demand 3rd quarter year 2010 is 260, the actual demand 4th quarter year 2010 is 270, and t..

  Is the u.s. in an inflationary period now

Does an increase in the CPI mean the economy is experiencing inflation - Is the U.S. in an inflationary period now?

  Why no part of the change is due to the income effect

If my optimal choice for two goods (cookies and milk) is different from two different weeks (for example, week one is C:8,M:16 and week two is C:16,M:16) BUT INCOME IS THE SAME throughout all weeks ($8).

  The market for a product is expected to increase

The market for a product is expected to increase at an annual rate of 8%. First year sales are estimated at $60,000, the horizon is 15 years, and the interest rate is 10%. What is the present value?

  Compute point price elasticity of demand for this product

Compute point price elasticity of demand for this product.

  What the factors exerting influence on price elasticities

Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand

  How does the heckscher-ohlin theory differ from ricardian

How does the Heckscher-Ohlin theory differ from Ricardian theory

  What is level of savings at equilibrium

Let us say that an economy has a consumption function given by C = 900 + 0.9Yd where Yd is the disposable income. There is a lump-sum tax of 90. Investment level is autonomous at 400 and government spending is also constant at 600.

  Elucidate what would social security payments have used

Elucidate what would social security payments have been in 2001 if the actual rate of inflation had been used.

  What do you think the increase in productivity

What do you think the increase in productivity is likely to move the economy closer to full-employment or farther away.

  Explain what are the main problems in the economies

a. What were the main causes for the financial crisis that hit the world economy in 2007- 2008 b. What caused the European debt crisis Brieáy discuss the situations in Greece, Ireland, Spain and Portugal - what are the main problems in these econo..

  1 for figure demand with zero transactions costs is q1d 50

1. for figure demand with zero transactions costs is q1d 50 - p and supply is qs -7 2p.a. verify all of the prices

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd