The private market estimates the demand and supply

Assignment Help Business Economics

Reference no: EM131424902

The private market estimates the demand (MPB) and supply (MPC) for a barrel of oil asp =40-.125Qand P= 20+ .075Q respectively, where Q is the number of barrels and b is the price.

What is the equilibrium price and quantity ?

If you include a Marginal External cost of .08Q how would your answer be different?

What would be the change in consumer and producer surplus – use a new graph?

How would the economist justify the loss in consumer and producer surplus?

Reference no: EM131424902

Questions Cloud

United states government has deregulated several industries : Beginning in the mid-1970s, the United States government has deregulated several industries, such as airlines, trucking, railroads, and telecommunications. On average, deregulation has_____________(Raised/ Not affected/ lowered) price.

The lower prices associated with economies of scale : Which of the following are reasons why the regulatory goal of making big firms smaller is not always desirable? It may prevent consumers from benefitting from the lower prices associated with economies of scale.

Marketing firm is interested in eliciting silvias tastes : A marketing firm is interested in eliciting Silvia’s tastes on a set of ten automobiles. In order to do this they ask Silvia, for each pair of alternatives (x,y), whether she finds x at least as good as y. Silvia is interested in both the reliability..

Whole foods for customers of natural foods groceries : Whole Foods used to compete with Whole Foods for customers of natural foods groceries. Both were deciding how many stores to have across the U.S. in 2006. Each had an annual total cost function of: T C(q) = 25 + 1.2q Where q is the number of stores t..

The private market estimates the demand and supply : The private market estimates the demand (MPB) and supply (MPC) for a barrel of oil asp =40-.125Qand P= 20+ .075Q respectively, where Q is the number of barrels and b is the price. What would be the change in consumer and producer surplus – use a new ..

What is the socially conscious solution : The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC=0.02Q associated with Q units of nitrogen oxides output of a chemical process per month. What is the competitive solution? What is the sociall..

Same arguments to reallocate pollution credits : The marginal CO2 abatement costs for two companies are modeled as 16 + 2 A1 and 10+2 A2. The total cost functions are modeled as 16A1 + A12 10A2. Would you use the same arguments to reallocate pollution credits for different States? How about differe..

Other things being? equal-depreciation of the dollar : Other things being? equal, a depreciation of the dollar

Status of women in the ashrama system : Explain and illustrate the roles and duties of the student (brahmacarya), householder (grhastha), hermit/renouncer (vanaprastha / samnyasa), as well as the status of women in the ashrama system. ?(Pls help with two or three paragraphs, approx 10 line..

User Account

All Pages