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- Differentiate between technical efficiency and economic efficiency with examplesDiscuss the role of microeconomics versus macroeconomics in agricultural economics.The over-allocation or over production of goods and services leads to market failure and unsustainable development.What is an appropriate diagram to represent this statement?
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- Suppose the given functions describe the market for artisanal single-batch maple syrup. If climate change would cause this market to collapse entirely*, what is the total market benefit of avoiding that environ- mental catastrophe? 7.5 2 Ps= 5+Qs *Extraction of syrup requires below-freezing nights and relatively warm days in the winter PD = 100 QDLecture: Externality - Pigou8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost functionis C(QA) = 125 + 8QA + 5QA2, where QA is leather production per week in thousands of pounds.a) If leather sells for $408 per thousand pounds, how much leather will All-Leather produce?How much profit does All-leather earn?Enjoy is a beverage company located on Lake Michigan near All-Leather in Chicago. Enjoy’sproduction of beverages is negatively affected by water pollution from All-Leather’s productionof leather. Enjoy’s total cost function to produce beverages isC(QE) = 10QE +3QE2 + 3QA2where QE is Enjoy’s weekly production of beverages, in thousandsof gallons and, as above, QA is All-Leather’s weekly production of leather.b) Is this an example of a pecuniary externality or a real externality? Explain.c) What is the extra cost to Enjoy from an additional thousand tons of leather production by AllLeather (i.e., the external marginal cost of an extra unit of QA…What is the correct overall market price for 2022-2024?
- Should a firm exceed the minimum legal limits of government imposed environmental regulations and be responsible for the environment, even if this responsibility leads to a wealth reduction for the firm? Is environmental damage merely a cost of doing business?Price and cost (thousands of dollars per student) 20 S = MC 16 12 MSB 8 MB 4 200 400 600 800 1,000 Quantity (students per year) The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium number of students being privately educated is and the efficient quantity is A) 400 students; 400 students B) 600 students; 400 students C) 600 students; 600 students D) O students; 400 students E) 400 students; 600 studentsSupply curves for the production of oil private+social costs is shown. Answer the following questions based on the diagram. Sanaton are shown in the diagram below. Supply based on both private and Price Supply (Private + Social) Supply (Private) (15500,$120) (21500,$107) Demand Quantity