User Account

All Pages

Market for political advertising during election campaign

Assignment Help Macroeconomics
Reference no: EM131056409

Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC = 200 + 2q where Q is the quantity of advertisements, and the private marginal benefit (demand) curve is PMB = 1000 - 3q. The marginal negative production externality e in the market is e=3q (note that the externality from producing an additional advertisement increases with the number of advertisements). Which of the following statements is true?

a. The socially efficient level of output is q=200, which suppliers will produce if a production tax of 600 per unit is imposed per political advertisement.

b. The socially efficient level of output is q=100, which suppliers will produce if a production tax of 300 per unit is imposed per political advertisement.

c. The socially efficient level of output is q=160, which suppliers will produce if no taxes are imposed in this market.

d. The deadweight loss in the market equilibrium is $18000.

e. The deadweight loss in the market equilibrium is $9000.

Reference no: EM131056409

Questions Cloud

Play around with prices is a bad idea : Read the article "Play around with prices is a bad idea" and answer the following questions:
Operating at full employment equilibrium : Consider an economy that is operating at full employment equilibrium. Graphically illustrate the effect of an increase in government spending (G) on the price level and the level of GDP in the short run.
Write a program that uses epoll_create() to create an epoll : When, as in this case, epoll_wait() is given an epoll file descriptor with an empty interest list, what happens? Why might this be useful?
Data in the accompanying table show the number of appliances : Circuit board capacitors. Use the data of Table 2.1, but omit the data on board 4. (a) Calculate the pooled estimate  of the assumed common value of the binomial proportion.
Market for political advertising during election campaign : Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC = 200 + 2q where Q is the quantity of advertisements, and the private marginal benefit (demand) curv..
Measurement problem in calculating gdp : A report by the World Bank noted the following: "Informal economic activities pose a particular measurement problem in calculating GDP, especially in developing countries, where much economic activity may go unrecorded".
What evidence might you bring to the hearing : A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
Write a program that uses this scheme with select() : One solution is to fork a separate child process that copies each message from the queue to a pipe included among the file descriptors monitored by the parent. Write a program that uses this scheme with select() to monitor input from both the term..
Total quantity of taxi trips supplied by licensed taxi : In this equation, P is the price of a taxi trip, and Q is the total quantity of taxi trips supplied by licensed taxi companies. The marginal cost, to a taxi company, of supplying a taxi trip is $18. A taxi company's only ?xed cost is the cost of p..

Reviews

Write a Review

Macroeconomics Questions & Answers

  What will be the market price of the good

Suppose there are two firms in a market who each simultaneously choose a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 60 - 4Q. Also, each ..

  Assume the chinese government abandons

Assume the Chinese government abandons the peg and allows the yuan to float.What would be the effect on Chinese imports and exports.

  Use a hypothetical example to illustrate whether you agree

Use a hypothetical example to illustrate whether you agree or disagree with the following statement, "Unemployment will go up more if the demand for labor is elastic, because the demand for labor will decrease more when you have elastic demand than i..

  Explain why the labor demand curve slopes downward

Explain why the labor demand curve slopes downward. Recall that there are 2 reasons.

  Question regarding the absolute advantage

The table above shows how much each of two countries can produce in 40 hours. (For example, England can produce 40 units of cheese in 40 hours.) England has an absolute advantage in __________ and the Spain has an absolute advantage in __________.

  What would affect equilibrium staff size in open-staff case

Under the Physicians' cooperative model, if the supply price of physicians were to rise, how would this affect the equilibrium staff size in the open-staff case How would it affect the optimal staff size in the closed-staff case

  Explain why should a government be concerned with pricing

Explain why should a government be concerned with the pricing of products that a company transfers.

  Suppose if the table shows the demand faced by a monopoly

Suppose if the table shows the demand faced by a monopoly firm then what is that firms marginal revenues

  The economist magazine uses prices of mcdonald

The Economist magazine uses prices of McDonald's Big Mac hamburger to calculate the PP values for currencies. The following data are taken the January 2015 Big Max Index.Bug Mac Price in Local CurrencyUS USD$4.79

  Illustrate what is your rate of return for each alternative

Illustrate what is your rate of return for each alternative for four stock prices one year from now. Summarize your results in a table that shows the rate of return on investment for all three alternatives.

  A private closed economy includes households

A private closed economy includesA.households, businesses, and international trade, but not government. B.households, businesses, and government, but not international trade. C.households only. D.households and businesses, but not government or inter..

  Find the equilibrium wage and employment before any tax

Suppose the supply for optometrists is given by LS= -6 + 0.6W, while the demand curve is given by LD= 50-W. Also, assume that the government imposes a payroll tax equal to $8 for each optometrist hired by a firm. a. Find the equilibrium wage and e..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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