Question: Help please with number 3 a-e 3. Consider a competitive market where demand and supply are given by PD = 500 - 2qPs = 3q

Help please with number 3 a-e

3. Consider a competitive market where demand and supply are given by PD = 500 - 2qPs = 3q (a) Sketch this market and find the competitive outcome. 5 points. (b) Indicate graphically and calculate producer and consumer sur- plus. 5 points. Suppose the production of this good does external harm to some- one according the following external damage function: ED(q) = 50q2 (c) Sketch the true social marginal cost and benefit and find the ef- ficient level of output. 10 points (d) How much deadweight loss does the market outcome general? 5 points (e) What coasian payments to those harmed could achieve the effi- cient outcome? 5 points

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

5. Consider a competitive market where demand and supply are given by PD = 500 - 2qPs = 3q (a) Sketch this market and find the competitive outcome. 5 points

3. Consider a competitive market where demand and supply are given by PD : 500 2qu : 3:] (a) Sketch this market and nd the competitive outcome. 5 points. 09) Indicate graphically and calculate...

Provide solutions to the following attachment. Problem 3 [24 marks] A competitive firm uses two inputs, capital (?) and labour (?), to produce one output, (?). The price of capital,...

Exercise #1. A firm produces output using the technology y= -KLi, 1,000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the yearly output. The...

Exercise one. 1.On the market for widgets, the maximum price anyone is willing to pay is $100 (quantity demanded is zero at a higher price). The equilibrium price is $80 and the equilibrium quantity...

Hi please help me with these problems. Please provide detailed answers and explanations. Thanks! [30 Points] 1. Anan enjoys eating out at a French caf and a Spanish tapas bar for lunch when she can....

Part 1. 1). The market demand function for a good is given by Q = D(p) = 800 ? 50p. For each firm that produces the good the total cost function is TC(Q) = 4Q+( Q2/2) . Recall that this means that...

Dear Tutor I need also help with graph please drawing it will help me as well thank you. 7. Short-run supply and long-run equilibrium Consider the competitive market for rhodium. Assume that no...

Question 1 (2.5 Marks): A) Explain the difference between direct and indirect finance. B) What role do financial intermediaries and financial markets play in the process of direct and indirect...

Consider the competitive market for jet skis. The demand and supply for jet skis is given by the following equations: Demand: P= 1000 - 20X Supply: P =20X X is the number of jet skis. There is a...

A potential difference of 4.80kV is established between parallel plates in air. Part A If the air becomes ionized (and hence electrically conducting) when the electric field exceeds 3.00

The following identity is known as Fermats combinatorial identity: Give a combinatorial argument (no computations are needed) to establish this identity. Consider the set of numbers 1 through n. How...

E10.20 (LO 3) (Impairment) The management of Sprague Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has...

Based off of Walmart, Attempt to comment about the practices and policies you think a company should be following with regard to "Green HRM" and what positive changes, you would like to see, as...

1. What is the meaning of the information we are collecting?

3. How much information do we need to collect?

2. What types of information are we collecting?