Atextile mill releases pollution into nearby wetlands, and the associated health and ecological damages are not considered in the private market. suppose you observe the following market structure:
mpb= 800- .5q mpc= 20+ .3q
meb = 0 mec= .4q
a. find the competitive equilibrium, qc and pc, and the efficient equilibrium, qe and pe.
b. graph these curves and clearly mark the differences between these two equilibriums. you do not need to worry about scale or accurately depicting their slopes relativ to each other, your graph just needs to be qualitatively correct.
c. what is the level of deadweight loss at the competitive outcome, relative to the efficient outcome?
d. suppose the textile mill owned the rights to the wetlands, and it is negotiating with a private enviroment groups that is willing to pay the mill to produce less output. for the 800th unit of output, determine the range within which a payment would be acceptable to both parties.
e. at an output of 800 units, what is the cumulative external cost of production?

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)

Predict how the price of athletic shorts would change if schools banned their use