Deadweight loss with the externality, Macroeconomics

+44 141 628 6080
[email protected]

Deadweight loss with the externality

Suppose that demand for a product is Q = 1,200 - 4P and supply is Q = -200 + 2P. Furthermore, suppose that the marginal external damage of this product is $8 per unit. How many more units of this product will the free market produce than is socially optimal? Calculate the deadweight loss associated with the externality.

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Deadweight loss with the externality

Reference No:- TGS066474

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Macroeconomics

Q : Firm profits-marginal cost and average variable

A profit-maximizing firm in a competitive market is currrently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. What are this firm's profits, marginal cost, and average variable cost

Q : Equilibrium price and quantity before and after the tax

Consider the inverse demand function for mangos, which is defined by the equation p = 91 - 5q, where q is the number of crates that are sold. the inverse supply function is defined by p = 3 + 6q. In the past there was no tax on mangos but now a ta

Q : Pure market and pure command economic system

Compare and Contrast the pure market and pure command economic system. Where does the United States fit in on this continnum?

Q : Company common fixed costs for last year

Plant B had sales of $200,000 and a contribution margin ratio of 30%. Net operating income for the company was $20,000 and traceable fixed costs for the two plants totaled $50,000. Johnson Company's common fixed costs for last year were:

Q : Deadweight loss with the externality

Q : Accounting for investment trust funds

Describe GASB requirements for accounting for Investment Trust Funds. Include (a) a discussion of when the use of investment trust funds is appropriate; (b) the investments to be included and excluded;

Q : College textbooks are more challenging

Why college textbooks are more challenging than those used in high school or books read for pleasure.

Q : Optimal bidding strategy in second-price sealed-bid auction

One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a second-price sealed-bid auction.

Q : Full deduction for the casualty

A taxpayer suffers a casualty loss on personal use property for which he has insurance coverage. However, to avoid a premium adjustment, the taxpayer fails to make a timely claim. In this situation is the full deduction for the casualty, after the

1936588

Questions
Asked

3,689

Active Tutors

1453445

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Deadweight loss with the externality

Reference No:- TGS066474

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Firm profits-marginal cost and average variable

Q : Equilibrium price and quantity before and after the tax

Q : Pure market and pure command economic system

Q : Company common fixed costs for last year

Q : Deadweight loss with the externality

Q : Accounting for investment trust funds

Q : College textbooks are more challenging

Q : Optimal bidding strategy in second-price sealed-bid auction

Q : Full deduction for the casualty

Why you feel unpleasantly hot and sweaty

Describe some of your personality traits

Is lifespan psychologists are unlikely to investigate

Problem regarding the america youth and social media

How ensure that the youth understand what study involves

Provide reasons why working from a person centred

Discuss social worker working with foster children

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Deadweight loss with the externality

Reference No:- TGS066474

Recent Questions Asked Macroeconomics

Q : Firm profits-marginal cost and average variable

Q : Equilibrium price and quantity before and after the tax

Q : Pure market and pure command economic system

Q : Company common fixed costs for last year

Q : Deadweight loss with the externality

Q : Accounting for investment trust funds

Q : College textbooks are more challenging

Q : Optimal bidding strategy in second-price sealed-bid auction

Q : Full deduction for the casualty

Asked Questions