CALCULUS ECONOMICS

Consider a market in which consumption of the good being traded generates a positive externality.

There are 100 identical consumers, each with a utility function given by (1/2)*(q^(1/2))+m +(G^(1/2)) where G denotes the total level of consumption in the market.

The good is sold by competitive firms that produce with a constant marginal cost of 1 $/unit.

QUESTION: What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market?

asked by Jenney

Respond to this Question

First Name

Your Response

Similar Questions

  1. economics

    Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by 1/2 √q+m+√G, where G denotes the total level of
  2. CALCULUS ECONOMICS

    Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by (1/2)*(q^(1/2))+m +(G^(1/2)) where G denotes the total
  3. math, economics

    Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by 1/2√q+m+√G, where G denotes the total level of
  4. Economics

    consumption function, C=5+0.75*(Y-T). Y is,national income and T is government taxes. a What is the marginal propensity to consume? b If disposable income is 100, what are consumers' savings? c What form might a "consumption
  5. economics

    Consider a consumer who has an experienced utility function given by . Let denote the market price of good , and assume that it remains fixed throughout the problem. The company selling the good starts an advertisement campagin
  6. economics math

    Consider a consumer who has an experienced utility function given by UEU(x,m)=2sqrtx+m. Let q denote the market price of good x, and assume that it remains fixed throughout the problem. The company selling the good x starts an
  7. Economics

    Consider the problem of a monopolist that sells its product on two different markets m, with m=1,2. Each market has an aggregate demand function given by 1200−α_m*p_m, where p_m denotes the price in market m, and
  8. Economics

    PLEASE ANSWER THIS! Consider the problem of a monopolist that sells its product on two different markets m, with m=1,2. Each market has an aggregate demand function given by 1200−α_m*p_m, where p_m denotes the price in
  9. Economics

    I have a question about the marginal utility theory If someone is at consumer equilibrium consuming normal goods, will an increase to income increase total utility consumption of goods? An increase in income will increase total
  10. CALCULUS ECONOMICS

    Consider an oligopolistic market with two firms. Each of them produces using a cost function given by c(q)=q^2. The aggregate demand in the market is given by 1000−p. Suppose that, in order to increase production, the

More Similar Questions