Explain which policy would be better for consumers

Assignment Help Econometrics
Reference no: EM13236737

Industry X is perfectly competitive and each firm produces output with a technology Q = C ½ L ½, where C is coal and L is labor. The demand for industry X's output is Q = 10,000 - 2P, and the firms in industry X can purchase coal at a cost of $10 per unit and labor at a cost of $10 per unit. Using coal, however, will cause $5.00 of pollution damage per unit used, so the government is considering imposing a $5.00 tax on the use of coal or a $5.00 tax on the purchase of good X. Which policy would be better for consumers? Which would reduce coal use more?

Reference no: EM13236737

Questions Cloud

Describe the ph of the solution at the equivalence point : What are the concentrations of H30+, OH-, NH4+ at the equivalence point? What is the pH of the solution at the equivalence point
What was the speed of the truck before the collision : A 7,800-kg truck runs into the rear of a 1,000-kg car that was stationary. The truck and car are locked together after the collision and move with speed 2 m/s
What is the equation of the demand curve faced by tesco : Suppose that when the price of beef is $10/kg, the daily quanity of beef sold in Tesco, a British Grocery store, is 10,000 kg. Suppose further that if the price of beef rises to $12/ kg, the amount of beef falls to 8000 kg.
Discuss the business uses of time series forecasting : What is the procedure involved in performing hypothesis tests and discuss the business uses of time series forecasting.
Explain which policy would be better for consumers : Industry X is perfectly competitive and each firm produces output with a technology Q = C ½ L ½, where C is coal and L is labor. The demand for industry X's output is Q = 10,000 - 2P, and the firms in industry X can purchase coal at a cost
What is the level associated with the efficient allocation : The private firm has a TEP level that is three times as high as the SOE: Ap = 3x As x the production functions are Yp=Ap x Np and Ys=As x Ns, where Np+Ns=1. The SOE employs three quarters of the work (Ns=3/4).
What is the radius of the circular path of the electron : Consider an electron moving with a speed of 8.60 106 m/s at right angles to a constant magnetic field, with B = 1.9 T
What are the optimal values of a and b : What are the optimal values of A and B? What is the minimum cost and if the cost of B could be reduced to $42 per unit, how many units of B would be optimal? What would the minimum cost be?
What is the efficent allocation of labor in the economy : Imagine an economy where a state-owned enterprise exists alongside a private firm that produces the same good. The private firm has a TEP level that is three times as high as the SOE: Ap = 3x As x the production functions are Yp=Ap x Np

Reviews

Write a Review

Econometrics Questions & Answers

  Determine whether the population variance is greater

Test the null hypothesis that the population variance is equal to 93 against the alternative that the population variance is greater than 93. Use alpha = 0.05. A random sample of 100 with a mean of 60 and a standard deviation.

  What end-of-quarter deposit must be made

Money can be deposited at 6% compounded quarterly. What end-of-quarter deposit must be made from the son's third birthday to his 18th birthday to provide $60,000 on each birthday from the 18th to the 21st.

  What happens to the supply and demand curves

Suppose Springfield's economy moves into a recession and Y falls to $9 and rising unemployment allows widget makers to reduce wages to $18 per hour. What happens to the supply and demand curves.

  Calculate the total surplus under free trade

a. Solve for the amount imported, consumer surplus, and producer surplus. b. Suppose a per unit tariff of $10 is imposed by the government, solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.

  Find the bayes nash equilibrium in the game

Consider a Cournot model where the market demand is P = a - qA - qB. Both firms have constant average and marginal cost of c. Demand, however, is uncertain: it is high (a = aH) with probability f and low (a = aL) with probability 1 - f.

  What would the production possibilities frontier

If American workers produce 4 cars a year and 10 tons of grain and Japanese workers can produce 4 cars per year and 15 tons of grain, what would the PPF (Production Possibilities Frontier) graph look like

  Is there a difference in the mean cell phone usage

The two sample sizes were 12 for children under 12 and 15 for children 13 to 17 years of age. Further, the standard deviation for children under 12 was 51.7, while the standard deviation for children 13 to 17 of age was 67.6.

  Determine the recovery period for the furniture

Your company just purchased office furniture (Asset class 00.11) for $100,000 and placed it in service an August 13, 2007. The cost basis for the furniture is $100,000, and it will be depreciated with the GDS using half-year convention.

  Can jacque fix the same kind of meal in 2 hours

Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..

  What is the probability that attendance is greater

The attendance at baseball games at a certain stadium is normally distributed, with a mean of 44,000 and a standard deviation of 2500. For any given game: a) What is the probability that attendance is greater than 46,000 b) What is the probability ..

  Specify private investment-gdp-gnp-nnp

specify the following using the information quantities are given in millions of dollars gross private domestice investment 586.1 inventory investment =30.9 compensation of employees 5,178.6 corporate taxes 215.9 macrovian exports of good a..

  Determine the rate of return on the investment

Sean Bell invested $10,000 on a blue chip stock five years ago and paid a commission of $90. He sold it today for $14,192.20 and paid the same commission, exactly 5 years and 4 months since the stock was bought.

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!

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