1. Study Questions and Problems #1 Complete the following statement to compare price and quantity in a competitive industry to those of a "green" industry for a product that generates pollution. The competitive market quantity will be in the green industry. that in the green industry, and the competitive market price will be that 1. Study Questions and Problems #1 higher than lower than quantity in a competitive industry to those of a "green" industry for a product that generates Complete the following statement to con pollution. the same as The competitive market quantity will be in the green industry. that in the green industry, and the competitive market price will be that
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- 1. The Coca-Cola Company markets the Coke brand and manufactures concentrate for sale to regional bottlers. Coke bottlers mix concentrate with sweetener and water to produce the soft drink for supermarkets, restaurants, and other retail outlets. Possible sweeteners include corn syrup and sugar. Owing to federal restrictions against imports, sugar is relatively more expensive in the United States than the rest of the world. (a) Why do U.S. soft drink bottlers use relatively more corn syrup than bottlers elsewhere in the world? (b) Draw a US Coke bottler’s demand for corn syrup. (Hint: You are free to assume any data necessary to draw the demand.) (c) Use your figure to explain how the following changes would affect a Coke bottler's demand for corn syrup: (i) removal of the federal restrictions against sugar imports; (ii) fall in the price of corn syrup; and (iii) increase in the sales of Pepsi. (d) Who benefits and who loses from the federal restrictions against sugar imports? Note:-…omework 4 - Compatibility Mode O Seah Joseph References Mailings Review View Help Table Design Layout A A Aa A 三 T AaBbCcI AaBbCcI AaBbC AaB AaBbCcC A D- A 三三三三|三。 田 1 Normal 1 No Spac. Heading 1 Title Subtitle Paragraph Styles 3. The supply and demand schedules below describe the market for compact fluorescent lightbulbs (CFLS). Demand Same Supply Q now at higher price with tax (millions) 200 Price + Supply (millions) Price (millions) tax $2.00 400 200 $2.50 350 250 250 $3.00 300 300 300 $3.50 250 350 350 $4.00 200 400 400 $4.50 150 450 450 $5.00 100 500 500 a. Graph the supply and demand curves, drawing them to scale. i. What is the equilibrium price? ii. What is the equilibrium quantity? Focus hp ho fg 144What is the equilibrium price of a small soda? * Market Demand Schedule Price of a Number Small demanded Soda per day $0.25 $0.50 $0.75 $1.00 890 500 480 470 $1.25 $1.50 $1.75 410 350 280 $2.00 $2.25 240 200 $2.50 $2.75 150 100 O $1.00 $1.25 $1.50 $1.75 not enough information available to determine
- 1. TopGames buys the rights to sell a certain video game title worldwide. top games pay $400,000 for this right and the marginal cost of providing the video game download is zero. TopGames’ economist realizes they have two groups of customers: the 2,000 hard-core fans of this game who will pay up to $150 a year to be able to play this game; and the 10,000 casual gamers who will pay up to $50 a year to play this game. If TopGames can NOT price discriminate, what is its profit-maximizing price? What is its profit? a. Price = $50; Profit = negative $100,000 b. Price = $50; Profit = $300,000 c. Price = $150; Profit = $100,000 d. Price = $150; Profit = $500,0002. TopGames buys the rights to sell a certain video game title worldwide. top games pay $400,000 for this right and the marginal cost of providing the video game download is zero. TopGames’ economist realizes they have two groups of customers: the 2,000 hard-core fans of this game who will pay up to $150 a year to be able to play this…CON101 section(2,3 &5)Dr. Abdulhadi Ibrahim / Bonus Quiz (Section 5) 8am Market failure can be caused by of Select one: tion O a. government intervention and price controls O b. externalities and market power O c. high prices and foreign competition O d. low consumer demand1. A profit-maximizing dairy farm is currently producing 10,000 gallons of milk per day. The government is considering two alternative policies. One is to give the farm a lump sum subsidy of $500 per month. The other policy is to give the farm a subsidy of $.05 per gallon of output. Both kinds of subsidy will increase production at this farm. Neither subsidy will affect production at this farm, since output is determined by profit b. maximization. C. Production at this farm will be increased if the per-unit subsidy is adopted but not if the lump sum subsidy is adopted. d. Which subsidy has the greater effect on production at this farm depends on whether fixed costs are greater than variable costs. Production will be increased by either kind of subsidy if and only if there are not decreasing returns to scale. e.
- Concept Question 3.12 Question Help The following table gives the supply schedule for an single firm's monthly supply of shirts. 50- Quantity Supplied 45- Price 40- $15 5 $20 7 35- $25 9 $30 11 Assume there are 10 identical firms in the market. Using the multipoint curve drawing tool, draw the market supply curve, and label it. 15- 10- Carefully follow the instructions above, and only draw the required object. 5- 04 40 50 60 70 80 90 100 110 120 130 140 150 160 Quantity of shirts After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line. Price of shirtsAsap3. Show in a diagram the initial market for 5 stages reverse osmosis filter systems. Then, show the effect of a decline on the price of replacement filters in this market. Be sure to present all labels related to initial and new market outcomes.
- Question 33 A major reason why the market equilibrium for a manufactured good may not be efficient is the industry is producing too little output. O there is likely to be a positive externality associated with production. O the industry is likely to be a monopoly. O there is too much government regulation. O property rights are not well defined.1. The graph below shows the unregulated market for a pesticide. When factories produce pesticide, they create waste and dump it into a lake. Use the graph below to answer the following questions Price (dollars per ton) 150 125 100 75 50 25 25 S 50 30 40 Quantity (tons per week) 0 10 20 For this market, suppose the following events occur independently. Illustrate the effect of each event in a separate graph showing the appropriate shift in supply and/or demand for coffee and indicate the effects on the equilibrium price and quantity. Be sure to explain your answer and label your graphs to avoid any misinterpretations. a. The external costs of pollution is $25 at every point of production. Draw the marginal social cost curve on the graph above. b. What is the quantity of pesticide produced if no one owns the lake? c. What is the efficient quantity of pesticide? d. Without government involvement, why wouldn't the efficient quantity be produced? e. Use Coase Theorem to explain how this…Ethanol is again viewed as one part of a solution to the problem of shortages of petroleum products. Ethanol is made from a blend of gasoline and alcohol derived from corn or sugarcane. This program can be expected to Show Transcribed Text 3. Exercise 10.4 the price of sugarcane. Ethanol is again viewed as one pa alcohol derived from corn or suga This program can be expected to J not change C increase n to the problem of shortages of petroleum products. decrease the price of sugarcane.