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You are a policy advisor responsible for air pollution in a region where there are only two chemical plants run by firm A and firm B. Firm A’s pollution abatement costs are 2x^3 , where x is a unit of pollution. Firm B is newer and has pollution abatement costs of 2x^2. Assume that neither firm is initially abating pollution. The per-unit benefit to a unit of pollution abatement is a constant $600.
1) What is the socially optimal level of pollution abatement? What is the socially optimal allocation of pollution abatement across the two firms?
Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. ..
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -6, while group 2’s is -4. Your marginal cost of producing the product is $50. Determine your optim..
Find unemployment rate and show HOW:
Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds pr..
q1. what are the impacts of demand? what happens to the demand curve when each of these determinants changes?
You are a sales manager in the electronics industry. Your firm had a salesperson in the far western U.S. who everyone thought was a high performer. List and describe five (5) pipeline analysis evaluation criteria that would have allowed you, the sale..
Discussion postings will require you to read about and discuss current macroeconomic issues or events. You should draw material from reputable sources and media outlets.
Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. Forecast the variable cost per unit. Fo..
Elucidate why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
A firm’s short-run cost function for the production of gizmos is given by the following expression: C(y) = 10y2 + 200y + 100 000 a. Calculate the range of output over which it would be profitable for this firm to produce gizmos if it can sell each gi..
An industry consists of two ?rms. The demand function for the product of ?rm i is qi =24−5pi +2pj. The marginal cost of production for each ?rm is zero. Find the price best-response function for ?rm i. What are collusive pro?ts? Bertrand pro?ts? What..
A monopolist has two distinct, identifiable subgroups in its market. The market demand function for group A is Qa = 1000 – 4Pa and that for group B is Qb = 500 – Pb. With total cost given by C = 100Q, find the amount sold to each submarket and the pr..
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