(1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's ruledetermine equilibrium price and equilibrium quantity.(2) In calm waters, the oil spilling from the ruptured hull of a grounded tanker spreads in alldirections. Assuming that the area polluted is a circle and that its radius is increasing at arate of 2 ft/sec, determine how fast the area is increasing when the radius of the circle is 40ft.(3) A firms production function is Q(L) =15L -0.1L, where output (Q) is a function of asingle input labour (L).(i) Find the number of workers required to maximize total product.(ii) For what number of workers is average product maximum?

Disclaimer :- as you posted multiple questions we are supposed to solve the first one only as per…

Answered: (1) For demand function Q, = a-bP and…

(1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's rule %3D determine equilibrium price and equilibrium quantity.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 4DQ

See similar textbooks

Related questions

Q: Assume that the government sets a binding price ceiling on the interest rate that banks charge on lo...

A: Price ceiling in any market is when the state fixes a price which is lower than the eqm price. It me...

Q: uestion 20 0/1 pts Most of the short-run fluctuations are the result of demand shocks uncertainty ca...

A: Answer 20 - c) can’t determine because short run fluctuation are caused due to change in labour , ca...

Q: stand. Non-wage income in royalties from the corn baller are $40 a day. a. Find the MU, and MUc. b. ...

Q: An economy, Delta exported goods worth $30 billion and services worth another $10 billion in 2020. ...

A: Merchandise Trade deficit is measured by the difference of export and import of goods. Given by $(30...

Q: Explain the three main types of unemployment and outline the policies that can be used to reduce eac...

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find ...

Q: conomists defined economic recession as more than 2 consecutive quarters in which there is a decline...

A: Economic recession is referred to the fall or decline in the GDP in the comparison of last year, qu...

Q: Consider a consumer with a medical bill of $1,000. He has a $250 deductible and a 10 percent coinsur...

A: Medical bill = $1000 Deductible = $250 The co-insurance rate is 10 percent on all expenses over $250...

Q: 29 MR Demand Refer to Figure 16-3. How much profit will the monopolistically competitive firm earn s...

A: Monopolistic competition is a type of imperfect competition such that there are many producers compe...

Q: Situation : Compute the interest for an amount of P 400,000 for a period of 7 years. 9. If it was ma...

A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. Interes...

Q: 5 What is the z-score that bounds a tail area of 0.15? a 1.10 b 1.07 c 1.04 ...

A: According to Z table, the closest value to 0.15 is 0.14917 at 1.04.

Q: COVID-19 has undoubtedly been a defining time in our generation's history, with effects on global ec...

A: Economies of different nations have experienced worse during pandemic and the main factor for the si...

Q: Using the information provided in the table below, answer the following questions. Country A Count...

A: PPF, production possibilities frontier shows different combinations of two goods that can be produce...

Q: 4. Which of the following statements is (are) correct? (x) When quantity supplied responds very litt...

A: Elasticity of supply measures the responsiveness of quantity supplied with respect to change in pric...

Q: . Which market condition (Monopoly, Perfect Competition, Duopoly, or monopolistic competition) is go...

A: The market structure in which there are a high number of customers and sellers is known as perfect c...

Q: Why are US and China involving themselves in trade war? What could be possible implication of this t...

A: The trade war started within the administration of President Donald Trump, the Trump administration ...

Q: 8. The reserve requirement, open market operations, and the moneysupply Consider a banking system wh...

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: Show that absolute PPP is satisfied when the domestic price of the consumption basket in foreign ...

A: ANSWER The outright computation is determined by separating the worth of a fair in one cash, by th...

Q: 8. If Ramil invested P20,000.00 at a nominal rate of interest of 14% compounded quarterly. What is t...

A: Given that, Ramil invested 20,000.00 Nominal interest rate = 14% or 0.14

Q: Question 2 Provide an Isocost and Isoquant Diagram showing the Substitution Effect and Output Effect...

A: First we solve the problem. Initially the firm faces budget constraint, 0.5L+0.5K=C.......(i) Produc...

Q: d. What is the profit maximizing output level of each company? e. Based on the mix...

A: ANSWER D FIRM 1 FIRM 2 THEREFORE, FIRM 1 PROFIT MAXIMIZING OUTPUT LEVEL = 10800 FIRM 2 PROFIT...

Q: The social optimum occurs where price is __________ and quantity is __________.

A: The social optimum is at Social cost equal to price.

Q: When a market is competitive and functioning properly, economic theory predicts that the market equi...

A: In the market where it is competitive and functioning properly, then it is the market equilibrium li...

Q: 100 200 300 400 figure above illustrates Mary's PPE. Which of the following statement is FALSE?

A: The production possibility curve shows the different combinations of two goods that can be produced ...

Q: Euclid, whose income is W, consumes bundles of food (F) and transportation (T). Suppose that Euclid ...

A: Goods are perfect substitutes when only of them is consumed. MRS is the rate at which a consumer ca...

Q: Pls help with this homework.

A: Lets say that quantity of housing demanded is the dependent variable and price of house is the regre...

Q: Calculate producer surplus when a production quota at q = 10 is introduced in a market with demand d...

A: The imposition of quota by the government leads to rise in inefficiency. The part of consumer surplu...

Q: Is brain drain, good or bad thing? Expl

A: The human resource of a country plays a very important role in the economy. It is the human resource...

Q: Ecological fallacy occurs when a researcher interprets the results of group-level data to the indivi...

A: Ecological Fallacy : The Ecological fallacy can be defined as the failure in reasoning when the inte...

Q: On this least-cost abatement curve, how much (GECO2) could we abate if we spent €8.37 billion?

A: Since you have posted multiple questions, as per guidelines we can solve only 1st question.

Q: Explain the difference of environmental impact assessment in developed and developing countries.

A: A developed country, often known as an industrialized country, has a sophisticated and mature econom...

Q: Statement Canada Guatemala Hong Kong Korea Niger United Kingdom This economy experienced the fastest...

A: ANSWER

Q: suppose atmospheric co2 is growing at 2 ppm/yr, fossil and cement emission are 9 GtC/yr and the air ...

A: Given: CO2 growing rate = 2 ppm/ year 1 ppm of C02 = 2.12 gtc (standard value) Therefore, CO2 leve...

Q: With a worldwide recall of some 8 million cars and 51 deaths that U.S. regulators say have been caus...

A: An organization's organisational culture is a set of internal values and behaviours. The study of ho...

Q: 57. The supply of a commodity refers to A. O Actual production of the commodity B. O Total existing ...

A: Introduction:- Supply: It is a fundamental economic concept that describes the total amount of a spe...

Q: 2. A consumer with the utility function U(x,,x2) = xfx faces prices p, = 4, P2 = 5 and has an income...

A: Utility Function : U(x1,x2)= x12 x23 Maximise: U(x1,x2)= x12 x23 Subject to: Budget Constraint p1x1+...

Q: Normal profit is called normal because

A: To find: Normal profit is called normal because

Q: Using the information provided in the table below, answer the following questions. Country A Count...

A: A country has an absolute advantage in producing the good which it can produce more than the other c...

Q: 1. Explain how each component in fiscal policy is used to solve the economic problem and illustrates...

A: Fiscal policy consists of three main components: 1. Receipts from the government2. Government Spendi...

Q: . With which of the theories of wages, is the name of John Stuart Mill associated?

A: With which of the theories of wages, is the name of John Stuart Mill associated?

Q: If a firm shuts down temporarily, it will incur loss equal to

A: To find: If a firm shuts down temporarily, it will incur loss equal to

Q: . A consumer has ·100 hours of time to allocate to either labor or leisure ·A real wage w=50 ·Divid...

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the exa...

Q: The table below represents national macroeconomic data for Year 1 and Year 2. Year Y K N 1 3200 1800...

Q: The table below represents national macroeconomic data for Year 1 and Year 2. Year Y K 1 4000 1500 X...

A: Total Factor Productivity is given by the letter A in the production function Y = A K0.3N0.7 So we k...

Q: Assignment Booklet 1 Identity and ldeology Use the following information to answer question 6. Some ...

A: The Answer is - A. Individual should have freedom to earn an income as they see fit it

Q: In the Prisoner's Dilemma game, the dilemma is that in the Nash Equilibrium, neither play has pursue...

A: Game theory is the analysis of how interacting choices of economic agents generate outcomes that are...

Q: Write the symbolic notation to determine the present value Po of the following cash flow diagram wit...

A: In the following question, it is given that : A Cash flow diagram Interest Rate = 2% Time period = 1...

Q: Explain and diagrammatically illustrate the impact that the Covid-19 -pandemic induced restrictions ...

A: Pandemic causes loss of human capital in almost every nations . It badly impacted economically and...

Q: What are the 3 main disadvantages and 3 advantages when a country specializes in trade.

A: Trade is a monetary action that is done in a market game plan. Trading straightforwardly suggests on...

Q: pls solve this ques within 10-15 minutes in clear handwriting I'll give you multiple upvotes.

A: The answer is given below

Q: Which of the following is true regarding Lord Dunmore and his proclamation of November 1775? Multipl...

A: Answer is given below

Question

(1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's rule
determine equilibrium price and equilibrium quantity.
(2) In calm waters, the oil spilling from the ruptured hull of a grounded tanker spreads in all
directions. Assuming that the area polluted is a circle and that its radius is increasing at a
rate of 2 ft/sec, determine how fast the area is increasing when the radius of the circle is 40
ft.
(3) A firms production function is Q(L) =15L -0.1L, where output (Q) is a function of a
single input labour (L).
(i) Find the number of workers required to maximize total product.
(ii) For what number of workers is average product maximum?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

3. Garibaldi Provincial Park is located between Squamish and Whistler. A travel cost survey was completed to estimate demand for trips to the park. Bascd on the survey an estimated demand function was derived to represent an average household: P= 200 – 50Q. This is demand per year per household. If there are approximately 2000 households with a travel cost of $150, 3000 households with a travel cost of $100, and 4000 households with a travel cost of $50, what is the total consumer surplus per year from the park?
(a) Show that the function Q = a/P* , where a and c are constants, has a constant elasticity of demand: ɛg = -c. (b) (i) Determine the elasticity of demand for train journeys on a given route when the demand function is Q = 1200/P|.2, where Q is the number of fares in thousands. (ii) If the fare increases by 5%, use elasticity to calculate the percentage change in demand. (iii) If the fare decreases by 5%, use elasticity to calculate the percentage change in demand.
A movie theater has been charging $ 10.00 per person and selling about500 tickets on Saturday and Sunday nights. After surveyingtheir customers, theater owners estimate that for every 50 cents theylower the price, the number of attendees will increase by 50 per night.Find the demand function and calculate the consumption surplus whentickets are sold for $ 8.00.
The travel time (t) on the segment of a highway connecting city A with city Bhas been observed to follow the equation below, as a function of traffic flow(v): t = 15 + 0.02v, where t and v are measured in minutes and vehicles perhour, respectively. The demand function for travel connecting the two cities isv = 3500 – 120t.a) Determine the equilibrium time and traffic flow.b) If the length of the highway segment is 30 kilometres, what is the averagespeed of vehicles traversing this segment at equilibrium conditions?
Given the covid environment what do you think the elasticity for Mask was prior to April 2020 versus after April 2020 explain
QUESTION 11 The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T. Demand for traffic (measure as traffic volume per minute) on this road is T=6,880 -– 70.(1/S). a. Find the equilibrium traffic volume in the absence of any congestion tollI. b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. c. Find the optimal level of traffic volume. d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.)
A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm ZER F11 F12 F6 F7 F8 F9 F10 prt s
The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park. Each permit allows the owner to release one tonne of pollutants into the atmosphere. Price per Pollution Permit Quantity of Permits $4,500 100 4,000 200 3,500 300 3,000 400 2,500 500 2,000 600 1,500 700 were charged, how many tonnes of pollutants would be discharged into the atmosphere, assuming a straight-line a. If fee for a pollution perm demand curve? Quantity: tonnes b. Suppose government were to set a fee of $2,500 per pollution permit. How many tonnes of pollutants would now be dumped? What is the total revenue received by government? Quantity: tonnes Total revenue: $ c. Suppose that a new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for pollution permits in the industrial park drops by 200 tonnes. Assuming that government holds the permit fee at $2,500, how many tonnes of pollutants would now be dumped? What…
From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not? Can extreme levels of pollution hurt the economic development of a high-income country? Why or why not? How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries? The table below shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social costs. How does accounting for the externality affect the equilibrium price and quantity?
b) Discuss and explain the concept of positive return toscale showing it relationship with the quantity ofproduction.
Q4. (a) If you are a firm owner who is operating in the perfect competitive market, you areproducing socially efficient outcome. Does it imply that your profits are zero? If you become amonopolist then why do you deviate from the socially efficient outcome? b) In Delhi, as the winter season is approaching, how will it affect the demand function and themarket equilibrium of sweater market? Now after that if the price of wool increases how will themarket equilibrium be affected?
A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, what level of emissions does the firm choose under the tax? A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, how many units did the firm abate relative to the unregulated environment?