SophiaPretty

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    Strayer,Devery,Harvard University
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    WalMart
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Category > Business & Finance Posted 05 Sep 2017 My Price 6.00

Daisy Duck has a monopoly in oil

Daisy Duck has a monopoly in oil refinement in the local market. The demand for Daisy’s oil is: P = 65−q.The relevant marginal revenue function is MR(q) = 65 − 2 · q. Her marginal cost function is MC(q) = 8. In the refinement of oil, she emits pollution that has the marginal external cost function: MEC(q) = 2. Whatlevel of output will Daisy select to maximize profits? What is the marginal social cost of Daisy’s profitmaximizing output? What do consumers pay for Daisy’s refined oil? Is this level of output efficient? Shouldmore or less oil be refined to reach the optimum output level? Should the local government charge her apollution fee for each unit of oil she refines

Answers

SophiaPretty
(5)
Status NEW Posted 05 Sep 2017 09:09 AM My Price 6.00

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