6 Please click on the [File) - SAVE AS prac4-abc, where abc are your 3 Initials, to YOUR OWN DEVICE. 7 Fill in the blank cells where indicated. 8 SUBMIT ON THE CANVAS ASSIGNMENT SUBMISSION SECTION. 10 1. Provision of a Public Good Like H&R Figure 4.4) Suppose also that the average cost & marginal cost of providing Wis 40 per unit Suppose that three people in a small village have the following demands for a public good, Clean Water (W) P. 100-2.0 P. - 80 - 1.0'Qw P, -50 - 0.5'QW Fill in the columns below. P, Market Demand AC-MC 45 A. Insert a Scatter Chart of all columns to the right of the columns In the boxes below, insert the amount of W that each person would independently demand at the cost given. Person 2 Person 3 B. Bold the row above indicating the socially optimal level of W that should be provided. [HINT: If you can't find equality, choose the row that has higher benefit than cost.) HABEAS DAMA Problems Linear Regression Mini-Tutorial2 Ready Paste BIU + Merge & Center N94 x fx LM CD Person 2 Person 1 Person 3 B. Bold the row above indicating the socially optimal level of W that should be provided. CHINT: If you can't find equality, choose the row that has higher benefit than cost.) 2. Taxing a Polluting Product from a Firm in Perfect Competition Total Total Output Private Social (tons) Cost ($) Cost (5) 5 7 Marginal Marginal Private Social Cost ($) Cost (S) Price (S) none none 4 N t A o 0 = 103 301 391 133 m One ton of output sells for $18. A. Identify (bold) the profit-maximizing (ie, price =marginal cost] private & social levels of output. B. On the basis of these curves, place the pollution tax per unit the gov't would have to charge to persuade the producer to produce the socially optimal level of output in the box to the right. 65 3. Pollution Taxes & Marginal Cost of Reduction [Like H&R Fig. 8.3] Suppose that a firm's Marginal Cost of Reduction of Pollution is given by 10000 MCR B D G H I J K L M A. Identity (bola) the profit-maximizing Le, pnce Emarginal cost private & social levels or output B. On the basis of these curves, place the pollution tax per unit the govt would have to charge to persuade the producer to produce the socially optimal level of output in the box to the right 3. Pollution Taxes & Marginal Cost of Reduction (Like H&R Fig. 8.3] Suppose that a fim's Marginal Cost of Reduction of Pollution is given by 10000 MCR = Fill in the columns below, & insert a Scatter Chart in the box on the right. Suppose that a govemment authority is deciding between a tax of 100 & 200 per unit of pollution Bold the amount of pollution, Q, the firm emits with T, in red & with T, in blue. MCR 100 110 120 130 140 150 92 4. Pollution Permits The polluters' demand for pollution "permits" (Q) for a P = 1000 - 5 Qn 110 120 130 140 150 Price ($) 92 4. Pollution Permits The polluters' demand for pollution "permits" (q) for a given area is given by: P = 1000 - 5 QD What is the market price of a "permit" if A. the local Pollution Authority supplies 100 of them? B. of the 100, 40 permits are given to the Sierra Club & taken off the market? C. new firms cause demand to increase to: P = 1200 - 5 Q.? [HINT: Use the columns below if necessary.1 Q. 1000 900 800 700 600 500 400 300 200 1000 900 800 700 600 500 400 300 200 200 1100 1000 900 800 700 600 500 400 110 114 5. See the Linear Regression Tab for the Regression Exercise 115 116 117 118 6 Please click on the [File) - SAVE AS prac4-abc, where abc are your 3 Initials, to YOUR OWN DEVICE. 7 Fill in the blank cells where indicated. 8 SUBMIT ON THE CANVAS ASSIGNMENT SUBMISSION SECTION. 10 1. Provision of a Public Good Like H&R Figure 4.4) Suppose also that the average cost & marginal cost of providing Wis 40 per unit Suppose that three people in a small village have the following demands for a public good, Clean Water (W) P. 100-2.0 P. - 80 - 1.0'Qw P, -50 - 0.5'QW Fill in the columns below. P, Market Demand AC-MC 45 A. Insert a Scatter Chart of all columns to the right of the columns In the boxes below, insert the amount of W that each person would independently demand at the cost given. Person 2 Person 3 B. Bold the row above indicating the socially optimal level of W that should be provided. [HINT: If you can't find equality, choose the row that has higher benefit than cost.) HABEAS DAMA Problems Linear Regression Mini-Tutorial2 Ready Paste BIU + Merge & Center N94 x fx LM CD Person 2 Person 1 Person 3 B. Bold the row above indicating the socially optimal level of W that should be provided. CHINT: If you can't find equality, choose the row that has higher benefit than cost.) 2. Taxing a Polluting Product from a Firm in Perfect Competition Total Total Output Private Social (tons) Cost ($) Cost (5) 5 7 Marginal Marginal Private Social Cost ($) Cost (S) Price (S) none none 4 N t A o 0 = 103 301 391 133 m One ton of output sells for $18. A. Identify (bold) the profit-maximizing (ie, price =marginal cost] private & social levels of output. B. On the basis of these curves, place the pollution tax per unit the gov't would have to charge to persuade the producer to produce the socially optimal level of output in the box to the right. 65 3. Pollution Taxes & Marginal Cost of Reduction [Like H&R Fig. 8.3] Suppose that a firm's Marginal Cost of Reduction of Pollution is given by 10000 MCR B D G H I J K L M A. Identity (bola) the profit-maximizing Le, pnce Emarginal cost private & social levels or output B. On the basis of these curves, place the pollution tax per unit the govt would have to charge to persuade the producer to produce the socially optimal level of output in the box to the right 3. Pollution Taxes & Marginal Cost of Reduction (Like H&R Fig. 8.3] Suppose that a fim's Marginal Cost of Reduction of Pollution is given by 10000 MCR = Fill in the columns below, & insert a Scatter Chart in the box on the right. Suppose that a govemment authority is deciding between a tax of 100 & 200 per unit of pollution Bold the amount of pollution, Q, the firm emits with T, in red & with T, in blue. MCR 100 110 120 130 140 150 92 4. Pollution Permits The polluters' demand for pollution "permits" (Q) for a P = 1000 - 5 Qn 110 120 130 140 150 Price ($) 92 4. Pollution Permits The polluters' demand for pollution "permits" (q) for a given area is given by: P = 1000 - 5 QD What is the market price of a "permit" if A. the local Pollution Authority supplies 100 of them? B. of the 100, 40 permits are given to the Sierra Club & taken off the market? C. new firms cause demand to increase to: P = 1200 - 5 Q.? [HINT: Use the columns below if necessary.1 Q. 1000 900 800 700 600 500 400 300 200 1000 900 800 700 600 500 400 300 200 200 1100 1000 900 800 700 600 500 400 110 114 5. See the Linear Regression Tab for the Regression Exercise 115 116 117 118