Question

Consider a riverside plant making jam which is sold in jars in a competitive market. The...

Consider a riverside plant making jam which is sold in jars in a competitive market. The monthly demand is p=10-0.00002q and the marginal cost is MC=2+0.0002q where q is in cases of jam sold per month. Jam making causes pollution in the river that imposes on another firm a marginal cost of 0.00004q.

How many cases of jam will be produced per month if there are no legal rules that prevent pollution? What will be the price of a case?

If the jam plant is responsible for taking account of pollution costs, what will the new production rate and selling price be?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a competitive market in which the market demand for the product is expressed as: P...
Consider a competitive market in which the market demand for the product is expressed as: P = 164 - 0.0002Q, and the supply of the product is expressed as: P = 4 + 0.0003Q. The typical firm in this market has a marginal cost of MC = 4 + 1.2q. a. Determine the equilibrium market price and output. Calculate the consumer surplus and the producer surplus at equilibrium in the industry. (2+2+2 = 6 points) b. Determine the output of...
Competitive Market Equilibrium. Syracuse Paper supplies printer paper in upstate New York. Like the output of...
Competitive Market Equilibrium. Syracuse Paper supplies printer paper in upstate New York. Like the output of other wholesale distributors, Syracuse Paper must meet strict guidelines and the printer paper supply industry can be regarded as perfectly competitive. Total and marginal cost relations are: TC = $3,600 + $5Q + $0.01Q2 MC = TC/Q = $5 + $0.02Q where Q is cases of printer paper per day. A. Calculate the firm's optimal output and profits if prices are stable at $20...
QUESTION 12 A company produces masks. The market is highly competitive with each mask selling for...
QUESTION 12 A company produces masks. The market is highly competitive with each mask selling for $15. The firm's total cost curve is C=50,000+(1/10)q. What is the firm's profit maximizing quantity? 75 150 0 50 4 points    QUESTION 13 An amusement park would like to charge its customers both an entrance fee and a price per ride. If the marginal cost per ride is $3, and each individual consumer’s demand is q = 12− P, what are the optimal...
1. Suppose a particular pesticide is sold in an unregulated perfectly competitive market, where the inverse...
1. Suppose a particular pesticide is sold in an unregulated perfectly competitive market, where the inverse market supply curve is P = 1 + 0.01QS and the inverse market demand curve is P = 8– 0.04QD where the quantity is in millions of gallons per year and the price is in dollars per gallon. Suppose that the external marginal cost of pesticide depends on the quantity of pesticide consumed as follows: EMC = 0.01Q a.    What is the market...
A factory produces steel which sells for a price (P) of $300 per ton. The factory...
A factory produces steel which sells for a price (P) of $300 per ton. The factory discharges waste products into a neighboring river during the production process. The steel factory’s marginal cost (MC) curve is given by MC = 100 + 0.5Q where Q is the quantity of steel produced measured in tons. As a result of the waste discharge, the river is polluted, making it more difficult for a nearby fishing/boating resort to attract customers. The marginal external cost...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises the market price above marginal cost and produces a smaller output.             b. it produces a greater output but charges a lower price.             c. it produces the same quantity while charging a higher price.             d. all surplus goes to the producer.             e. it leads to a smaller producer surplus but greater consumer surplus. 2. The demand curve of a monopolist typically...
The market for wine has many competitive producers and two types of consumers: residents of Canaan,...
The market for wine has many competitive producers and two types of consumers: residents of Canaan, whose demand curve for flasks of wine is QJ = 10 – P, andresidents of Aram, whose demand curve for flasks of wine is QR = 20 – 4P. Quantity is in thousands of flasks of wine; Price is in shekels. In this exercise, the wineries are not able to charge separate prices for residents of Canaan and Aram, since the market is competitive...
Question 1 2.5 pts 1. The perfectly competitive firm's demand curve is horizontal at the market...
Question 1 2.5 pts 1. The perfectly competitive firm's demand curve is horizontal at the market price. True False Flag this Question Question 2 2.5 pts 2. In perfect competition, the market price is established at the intersection of the market demand and market supply curves in the industry and the individual firms are "price takers" of that market price. True False Flag this Question Question 3 2.5 pts 3. The perfectly competitive firm will continue to produce in the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the marginal cost of the last unit sold. II. A monopolist with positive marginal costs and facing a linear demand curve always sets a quantity (or price) such that it sells on the elastic section of the demand curve. III. A monopolist regulated by marginal-cost pricing regulation sells at a price that covers its variable and fixed costs of production, but it still causes a...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT