1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DiKsa [7]
3 years ago
9

Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external

damage of this product is $12 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.
Business
1 answer:
eimsori [14]3 years ago
4 0

Answer: 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

Explanation:

Q=1200 - 4P and Q=-240 + 2P

In a free market quantity demand =quantity supplied

1200 -4P = -240 +2P

P =240

Sub P

Q* = 240

Socially optimal quantity is

Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC

MPC= marginal private cost =inverse of supply function

MPC = (1/2)*Q + 120

MEC=12

MSC =(MPC +MEC) = (1/2)Q +120 +12

MSC= MPB where MPB is marginal private benefit = inverse of demand functn

MPB = 300 -(1/4)Q

(1/2)Q + 132 =300 - (1/4)Q

Q° = 224

Difference btw Q* & Q° = 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

You might be interested in
If both supply and demand increase at the same time, then __________
Lelechka [254]

Answer:

A

Explanation:

the price of product will increase

7 0
3 years ago
During the recession of 2008 through 2010, Ford
mars1129 [50]

Answer:

During the recession of 2008 through 2010, Ford saw sales of its vehicles drop and was forced to reduce production. This decision reflected changes in the company's ECONOMIC environment.

Explanation:

The automotive industry crises occurred from 2008 to 2010, it was basically a part of the financial crisis that started in 2007. It also effected most of the Europe, but the results in America were far worst than any other part of the world. The main reason behind it was the rise in the fuel prices for these vehicles. As Ford didn't offer much fuel efficient models for costumers, their sales started to decline, which resulted in the reduction of production, and changed the companies economic environment.

3 0
3 years ago
The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The proble
shusha [124]

Answer:

Insolvent banks;Solvent banks.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The problem with bank runs is not that insolvent banks will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause solvent banks to fail and spread to the rest of the financial system.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

6 0
3 years ago
When presenting solutions, Chris (a salesperson)often has to handle buyer resistance. Chris should think of buyer resistance as
Vadim26 [7]

Answer:

C) Positive

Explanation:

Although in the question it is stated that Chris, who is a salesman, manages the buyer resistance while presenting the solutions, the Chris also thinks that buyer resistance is a positive event

Thus, in the provided scenario, option c is right, as it does not satisfy all other options available

So the right option is c.postive

4 0
3 years ago
Weber Company purchased a mining site for $659,964 on July 1. The company expects to mine ore for the next 10 years and anticipa
zzz [600]

Answer:

$41,774

Explanation:

the depletion expense is calculated below

Depletion expense reffered to the charge against profits for the use of natural resources.To calculate the depletion per unit we will need to calculate the total cost less salvage value then divide it by the total number of estimated units.

The expense is calculated by multiplying the depletion per unit by the number of natural resources units consumed current period.

Original cost= $659,964

residual value = $55,169

estimated units or tons= 96,740 tons

number of tons extracted in a given year = 6,682 tons of ore.

depletion expense =?

We will need to find the difference between the residual value and the original cost first. Which is

= (Original cost - residual value) = )$659,964 - $55,169)/96,740 tons

= 6.25

(6.25* 6,682 tons )= $41774

Hence,The depletion expense =$41774

5 0
3 years ago
Other questions:
  • Publisher problem: Full court press inc buts slick paper in 1525 pound rolls for textbook paper. Annual demand is 1800 rolls. Th
    15·1 answer
  • During an annual review Mitchel made the following assertion: "When I look at myself and my performance I see that what I have a
    13·2 answers
  • If William performs plumbing upgrades for Patricia in exchange for her incorporating his business, then their __________________
    7·1 answer
  • A private partnership whose shares are primarily offered to wealthy individuals and large institutions and which often makes hig
    12·1 answer
  • When two or more people share an account it is called a joint account. True or false
    5·1 answer
  • Digby's balance sheet has $85,185,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also e
    12·1 answer
  • In order to save $57,000 in five years, John will start saving money next month. He already has $10,000 in his account. The acco
    11·1 answer
  • Suppose Kim purchases a new personal computer produced in China for $ 2,800. What is the effect on the components of GDP and GDP
    5·1 answer
  • People are living paycheck to paycheck why is that a problem
    12·1 answer
  • A consumer charges a $2,530. 16 purchase on their credit card. The card has a daily interest rate of 0. 42%. If the consumer pay
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!