SOLUTION: ECN 100 Economics Problems Set

Attached. Please let me know if you have any questions or need revisions.ECN 100 Problem set 41Externalities IIConsider the market for private economics tutors in Davis. The market’s inverse demand curve isp = 1600 − 5Q, with Q being the number of students receiving tutor per quarter and p being priceper quarter. Economics tutors’ private marginal cost curve is MCP = 100 + 5Q. Also assume that,because economics professors curve their classes, when one student improves her grade, it causesevery other student to have a lower grade. This is a negative externality. Assume the marginal cost5of curving is MCC = 2 Q.Now assume that one private economics tutor takes over the entire market because the tutor has alower marginal cost than any other tutor. So, the market has a monopoly.1.11.2Please find the un-regulated monopoly equilibrium of this market.Please find the socially optimal equilibrium of this market.1.3 Please draw this market, including the following curves— demand, marginal revenue,private marginal cost, and social marginal cost. Also label the following points—theunregulated monopoly equilibrium and the socially optimal equilibrium. Also pleaselabel axes and where curves cross axes.1.4What is deadweight loss in this market?Now suppose that the City of Davis wants to ensure the socially optimal equilibrium in this marketby imposing a standard.1.5What standard should the City of Davis set?Now suppose that instead of a standard the City of Davis wants to impose a specific tax on thismarket to ensure the socially optimal equilibrium.11.6What specific tax should the city of Davis set?Now assume that due to a policy change, economics professors start curving more strictly and thenegative externality in the market for private economics tutors increases.1.7 What would the marginal cost of curving need to be for the un-regulated monopolyequilibrium to be the socially optimal equilibrium?1.1 The perfectly competitive equilibrium is the point where the market demand is equal to privatemarginal cost.P = MC1,600 – 5Q = 100 + 5Q1,500 = 10Q150 = QSubstitute this value in demand function.P = 1,600 – 5Q= 1,600 – 5(150)= 1,…

Order a unique copy of this paper
(550 words)

Approximate price: $22

Our Basic features
  • Free title page and bibliography
  • Plagiarism-free guarantee
  • Unlimited revisions
  • Money-back guarantee
  • 24/7 support
Our Options
  • Writer’s samples
  • Expert Proofreading
  • Overnight delivery
  • Part-by-part delivery
  • Copies of used sources
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

AcademicWritingCompany guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, always

Read more

Zero-plagiarism tolerance guarantee

The paper that you order at is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.

Read more

Free-revision guarantee

The thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy and Security policy

With, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.

Read more

Adherence to requirements guarantee

The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2020 at 10:52 AM
Total price:
The price is based on these factors:
Customer Academic level
Number of pages required
Urgency of paper