Marginal harm from the pollution on monopoly producer

Assignment Help Business Economics

Reference no: EM131242596

1. Suppose that the only way to reduce pollution from paper production is to reduce output. The government imposes a tax equal to the marginal harm from the pollution on the monopoly producer. Show that the tax may or may not raise welfare?

2. Do publishers sell the socially optimal number of managerial economics textbooks? Discuss in terms of public goods, rivalry, and exclusion.

Reference no: EM131242596

Questions Cloud

Described by the solow model with production function : A country is described by the Solow Model with a production function y =k1/2. Now suppose k is equal to 400. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is 5% and population growth is 0%. Is t..

Firms has contributed significantly to wage growth : Outsourcing of services by American firms has contributed significantly to wage growth in India. Explain why using a graph of the Indian labor market? Chanel perfume is sold in France and in the United States. Assume initially that one Euro is worth ..

What is the price elasticity of demand at this price : What is the price elasticity of demand at a price of 2? Is Bob's demand elastic or inelastic at a price of 2? Assume that the price is 3. What is Bob's total expenditure on movies? What is the consumer surplus? What is the price that maximizes Bob's ..

Euro-yen exchange rate is higher than this amount : Suppose that on Euro can be exchanged for 1.3 U.S. dollars and that one U.S. dollar can be exchanged for 80 Japanese yen. If these currencies can be traded freely with low transaction costs, what exchange rate would you expect between the Euro and Ja..

Marginal harm from the pollution on monopoly producer : Suppose that the only way to reduce pollution from paper production is to reduce output. The government imposes a tax equal to the marginal harm from the pollution on the monopoly producer. Show that the tax may or may not raise welfare? Do publisher..

The price of wholesale milk dropped : The price of wholesale milk dropped by 30.3%, when the Pennsylvania Milk Marketing Board lowered the regulated price. The price to consumers fell by less than 30% in Philadelphia. Why? A maker of specialty soaps supplies a unique soap made from cactu..

Computing the currency conversions : Suppose that you are holding US currency (denoted by USD) and are planning a trip to visit either Brazil or Bolivia. To assist in computing the currency conversions, create a VI that uses the currency exchange rate for the Brazilian Real (denoted by ..

Calculate the standard debiation of the investment : Calculate the expected value of the investment (b) Calculate the standard debiation of the investment Solve managerial economic problem: state of economy GDP GROWS SLOWLY 0.7 $1000 GDP GROWS FAST 0.3 $2000

What is set of market baskets that exhaust all of income : Suppose that Susan has a utility function U(D,F) = 10DF , where D is days of domestic travel, and F is days of foreign travel. Let the price of D be 100, the price of F be 400, and total income for travel be 4000. What is the set of market baskets th..

User Account

All Pages