This is a CSR project, and choose to nestle as our company Note: Please give answer on mentioned words (must add intext citation) and required
Equilibrium number of portable radios
Suppose the supply curve of portable radio rentals in Golden Gate Park is given by P= 5 + 0.1Qs, where P is the daily rent per unit in dollars and Qs is the volume of units rented in hundreds per day. The demand curve for portable radios is P = 20 – 0.2Qd.
a. If each portable radio imposes $3 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number?
b. How would the imposition of a tax of $3 per unit on each daily portable radio rental affect efficiency in this market? Will this achieve the social optimum?
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