Graph the total benefits and total costs functions, Microeconomics

This problem continues the analysis from question 2.

a.Another economic study finds that the marginal cost (MC) to farmers of nutrient runoff abatement is MC = .1Q. Graph this function & explain intuitively why it slopes upward in Q.

b. Following logic very similar to that in 2(c), find a formula for the total costs (TC) to farmers of a reduction in nutrient runoff.

c. Graph the total benefits and total costs functions on the same graph (again, feel free to cut and paste from Excel or a similar program). At approximately what level of abatement are net benefits to society (including both coastal and farming interests) maximized?

d.Graphically and numerically find the quantity of runoff abatement such that marginal benefits of reduced runoff are exactly offset by the marginal cost of the reduction (your graph should use the MB and MC functions, not the total functions). Why is this the efficient level of pollution abatement?

e. Suppose the status quo is zero abatement. Who wins and loses from moving to the efficient amount of runoff found in part d and by how much? Is there the potential to create a "win-win" out of this situation? How?

 

 

Posted Date: 4/1/2013 4:12:22 AM | Location : United States







Related Discussions:- Graph the total benefits and total costs functions, Assignment Help, Ask Question on Graph the total benefits and total costs functions, Get Answer, Expert's Help, Graph the total benefits and total costs functions Discussions

Write discussion on Graph the total benefits and total costs functions
Your posts are moderated
Related Questions
Another school of thought developed what is called loanable funds theory of interest. Among the principle economists who contributed to the development of loanable funds theory men

discuss scarcity,choice and opportunity cost

When is the economic theory useless? One misunderstanding is to under-estimate the role of an economic theory. Several people thought an economic theory useless since they thin

Q. Describe the Theory of effective demand ? Effective Demand:Theory of effective demand was developed separately in the 1930s by Michal Kalecki andJohn Maynard Keynes. It eluc

a. The diagram above depicts the current position of a hypothetical economy using the Keynesian Income/Expenditure approach. If national income is currently at Y1 explain why this

Q. What is Tradeable product? Tradeable:A product (a service or good) is tradeable if its purchaser can purchase it far away from the place where it is produced. Most goods (ot

The enzymes are highly specific in nature. During enzymatic reaction the enzyme is so built that it binds to the substrate in a specific manner. The stepwise mechanism of enzyme ca


compare and contrast adam smith''s theory of absolute advantage theory and david ricardo''s comparative advantage theory of international trade.

ahmed has 500 dolars.asma has 700 dolars.cismaan has 800 dolar