Reference no: EM132196902
Question: Suppose you are the world's only consumer of oil, which you buy in a competitive market (Note: we want you to assume that you are a price-taker despite being the market's only consumer). The marginal private benefit of your oil consumption is given by MB(x) = 64 âˆ' 2x/3, when you consume x units of oil.
Oil producers produce oil along a marginal cost curve described by MC(x) = 2x.
Your consumption of oil also generates a negative externality. The marginal damage of oil consumption on the rest of the world is described by: MD(x) = x^2/2
1. If there is no government intervention in the oil market, what quantity and price describe the private equilibrium?
2. Draw a well-labeled graph showing the demand, supply, and social marginal benefit curves for this market. Shade in the region that describes the deadweight loss associated from the private equilibrium.
3. What is the social loss associated from the last unit of consumption?
4. What is the socially optimal quantity of your oil consumption?
5. Briefly describe two government policies that achieve this level of consumption.
Step process consisting of mixing-forming and packaging
: The Peeps factory can be described as a three step process consisting of Mixing, Forming, and Packaging.
|
Determine voting rules to solve the problem
: For each of the following voting rules determine if it violates one of Arrow's conditions (P, D,or I): the method of majority rule, a round-robin tournament.
|
Compare the items by code and display an output
: Declare a struct named partType that has two members: name (holds the name of a part) and code (holds a whole number).
|
What is the value of the control of the hot wings
: What is the value of the control of the Hot Wings on which Apocalyptica placed?
|
What is socially optimal quantity of your oil consumption
: What is the socially optimal quantity of your oil consumption? Briefly describe two government policies that achieve this level of consumption.
|
Write the c statements needed to dynamically allocate
: Write all the C statements needed to define a new programmer defined type that contains a character string of up to 15 characters.
|
Diagram of test market study for the same research
: MKT202 - Marketing Research Essentials - Assessment - Designing Data collection tools - Design a survey questionnaire using different types of scales, technique
|
Which offer would you advice the pitcher to accept
: Suppose you are the agent for a baseball pitcher. Suppose he is offered the following contract by the New York Yankees: a signing bonus of $3,000,000.
|
Creates objects to store information about two films
: The Cassette class should contain an extra public data member called condition (an enum type that can take the values perfect, good, average or poor).
|