Reference no: EM131164544
F1 & F2 are the fixed costs of Firm 1 and Firm 2. D1 & D2 are the marginal costs of each firm.
The cost function is as follows: C1=F1+0.5D1(q1)^2, C2=F2+0.5D2(q2)^2
A=400, B=5, F1=20, F2=25, D1=0.8, D2=0.25, Market Externality=-10
Demand: Q=400-5P
Competitive:
Q=204.878, P=39.0244, NSB=6146.34, Total Externality=-2048.78
Monopoly:
Q=135.4839, P=52.9032, NSB=4064.4269, Total Externality=-1354.839
The questions I have yet to answer for my assignment are the following:
1. What is the socially efficient quantity for monopoly?
2. What is the NSB of the socially efficient quantity?
3. Suggest a Pigouvian tax/subsidy rate ($/unit) that will restore efficieny under competition and under monopoly.
Any tips/help would be very much appreciated.
Identify the market price and domestic consumption
: Suppose the following table reflects the domestic supply and demand for 4GB flash drives: Price ($): 15,13,11,9,7,5,3,1 Quantity Supplied (000’s): 8,7,6,5,4,3,2,1 Quantity Demanded (000’s): 2,4,6,8,10,12,14,16 b. Now suppose that foreigners enter the..
|
Economic sustainability and environmental sustainability
: "Any development program adopted by a country is considered sustainable only if the said program is economically, socially and environmentally sustainable." Do you agree with this statement? If yes, explain what you understand by social sustainabilit..
|
Used for controlling inflation
: First address what inflation is and how it is measured. Then, discuss the role it plays in our economy and list some specific strategies that can be used for controlling inflation. When commenting to your classmates’ posts, discuss whether or not you..
|
Compare and contrast absolute and comparative advantage
: Compare and contrast Absolute and Comparative Advantage – and discuss how each relates to gains from trade.
|
What is the socially efficient quantity for monopoly
: F1 & F2 are the fixed costs of Firm 1 and Firm 2. D1 & D2 are the marginal costs of each firm. What is the socially efficient quantity for monopoly? What is the NSB of the socially efficient quantity?
|
Get consumers to spend less on goods and services
: From a Keynesian perspective, the way out of recession is to. Get consumers to spend less on goods and services. Get consumers to spend more on goods and services.
|
Price elasticity of demand and income elasticity of demand
: Demand function for tickets for a rock concert has been estimated to be. Determine the values of the price elasticity of demand and the income elasticity of demand.
|
The export supply curve for particular country is the
: The export supply curve for a particular country is the
|
Marginal rate of substitution of hamburgers for slices
: Alanoud likes hamburgers and pizza. At her current level of consumption, her marginal rate of substitution of hamburgers for slices of pizza is 2. Explain what this means. If she increases her consumption of hamburgers, will her MRS (relinquishing ha..
|