ECON 460
Assignment 4
Answer Key
Question 1
Suppose that the MD = 5E and with its current technology, the firms MS is given by
MS1 = 200 5E.
a) Determine the socially optimal level of emissions E.
200 5E = 5E, therefore E = 20
b) Determine the emissions t
Economics 460 MT answer Key
Part 2 - Written
1. (5 marks) Sparky has the utility function u = xy 2 and a budget constraint
M = Px x + Py y. Initially M = 36; Px = 2; Py = 1.
(a) Find optimal x; y; and u
2M
M
y=
3Px
3Py
r
2
3 27Px Py u
4
x
=
M
=
x
=
=
M
3P
Example Term Paper Format
ECON 460
November 19, 2011
Abstract
The following paper is an example of the appropriate stlyle, layout and
format for an term paper or essay in an economics course. All papers should
have a title page that contains the following
Econ 460 Study Questions
Fall 2013
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) A monopoly might produce less than the socially optimal amount of pollution because
1) _
A) it earns economic prof
ECON 460
Answer s for HW 1
Kolstad (2nd edition)
Fall 2011
Homework One: pg 64 #2, #5 pg 87 #1
[2] Cost exceeds willingness to Pay by the three. (a) Pareto fails both options. (b) Majority would vote no
for A and yes for B, (c) Side payments would be too
Summer 2010
Study Questions
ECON 460: Environmental Economics
1
ANSWER KEY
Externalities and Public Goods
1. Suppose an industry has 12 rms, each with the following marginal (private) cost function
M Ci = 4Qi
(i = 1; :; 12)
and the market demand function
Fall 2010
Study Questions
ECON 460: Environmental Economics
1
ANSWER KEY
Externalities and Public Goods
1. Suppose an industry has 12 rms, each with the following marginal (private) cost function
M Ci = 4Qi
(i = 1; :; 12)
and the market demand function is
Notes on CV, EV and Consumer Surplus
ECON 402 May 30, 2006
Kevin Wainwright1 Simon Fraser University Burnaby, BC
1
Utility Maximization
Consider a consumer with the utility function U = xy, who faces a budget constraint of B = Px xPy y, where all variable