2. There are four firms in the widget market. Each of them emits five units of yuck, which are not currently regulated by the government. Each firm's total cost of abatement (cleaning up its yuck emissions) is listed in the table below. The government has just passed a new law limiting the total amount of allowable yuck to 10 units (for the entire industry). a. How much should each firm abate and why? Keep in mind that total emissions cannot exceed 10. b. What is the industry's total cost of abatement based on your allocation in a)? 0 2 3 4 Total cost of abatement 62 42 28 16 6 95 27 13 5 76 34 21 10 99 27 1 54 18 3 Each firm's total yuck emissions Firm A Firm B Firm C Firm D Firm E S 54 49 58 30 289

2. There are four firms in the widget market. Each of them emits five units of yuck, which are not currently regulated by the government. Each firm's total cost of abatement (cleaning up its yuck emissions) is listed in the table below. The government has just passed a new law limiting the total amount of allowable yuck to 10 units (for the entire industry). a. How much should each firm abate and why? Keep in mind that total emissions cannot exceed 10. b. What is the industry's total cost of abatement based on your allocation in a)? 0 2 3 4 Total cost of abatement 62 42 28 16 6 95 27 13 5 76 34 21 10 99 27 1 54 18 3 Each firm's total yuck emissions Firm A Firm B Firm C Firm D Firm E S 54 49 58 30 289

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 3SCQ: Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation...

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If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?
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Only typed answer and please don't use chatgpt The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q. 1A. How many leather is produced in the free market if the externality is not corrected. B) What is the free market price of the leather if the externality is not corrected? C) What is the social marginal cost?
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Imagine that the Australian national rugby union has exclusive rights to organize the games played by the national team. Rugby AU decides that the next match, between the Wallabies and the All Blacks, will be hosted at the Marvel Stadium in Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold or the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. The demand for concession tickets is QC(P) = 80 – 2P. Q)Suppose that Rugby AU becomes unable to verify the age of its customers; thus, the formerly distinct full fare and concessional ticket markets must be combined/merged in one single market. First, write the equation of the merged demand and…