From assignment 2 , the marginal consumer benefits (maximum marginal willingness to pay), marginal producer costs (minimum marginal willingness to accept), and marginal external costs in logs per unit time were respectively as follows: MBCons(Q)=MWTPCons(Q)=200040Q MCProd(Q)=MWTA(Q)=20Q+500 [1] MCFixurnal(Q)=250+60Q [2] where Q represents consumption baskets per year and price (P) units are in $/ basket. a) Recall that Turtle Island (N. America) currently has a GDP of \$24.99 Trillion US in current dollars with a population of 370,203,720 people (World Bank Data). Note this data only includes the USA, Canada, and Bermuda. Calculate the following: i) GDP/capita (use World Bank Data from above) ii) At the competitive market allocation labelled on the above graph, find Total consumption ( Cmurket ), consumption per capita ( cmarket ), and the price of a representative consumption basket, Pmarket * Use World Bank Data for population. iii) Repeat to find the socially efficient values for: Total Consumption, (C SE), consumption per capita (cSE), and price (PSE). b) Find the marginal private surplus function, MSPriv(Q) by subtracting the MCPrad(Q) from the MBCons(Q) equations ([1] - [2] above, and keep the Q's). Legend Total Tax=Area(B+C+F+G) iii) TS protucar = Aran [mFGH] 3. wo Margunal Tax = dustince green dumic (ii) TSp pivate = Area [B+F+C+4+ 3i) TSconsumer= Area [H+B+C+D]iv)TEexT=Area[H+b+E+L] From assignment 2 , the marginal consumer benefits (maximum marginal willingness to pay), marginal producer costs (minimum marginal willingness to accept), and marginal external costs in logs per unit time were respectively as follows: MBCons(Q)=MWTPCons(Q)=200040Q MCProd(Q)=MWTA(Q)=20Q+500 [1] MCFixurnal(Q)=250+60Q [2] where Q represents consumption baskets per year and price (P) units are in $/ basket. a) Recall that Turtle Island (N. America) currently has a GDP of \$24.99 Trillion US in current dollars with a population of 370,203,720 people (World Bank Data). Note this data only includes the USA, Canada, and Bermuda. Calculate the following: i) GDP/capita (use World Bank Data from above) ii) At the competitive market allocation labelled on the above graph, find Total consumption ( Cmurket ), consumption per capita ( cmarket ), and the price of a representative consumption basket, Pmarket * Use World Bank Data for population. iii) Repeat to find the socially efficient values for: Total Consumption, (C SE), consumption per capita (cSE), and price (PSE). b) Find the marginal private surplus function, MSPriv(Q) by subtracting the MCPrad(Q) from the MBCons(Q) equations ([1] - [2] above, and keep the Q's). Legend Total Tax=Area(B+C+F+G) iii) TS protucar = Aran [mFGH] 3. wo Margunal Tax = dustince green dumic (ii) TSp pivate = Area [B+F+C+4+ 3i) TSconsumer= Area [H+B+C+D]iv)TEexT=Area[H+b+E+L]
