Atextile mill releases pollution into nearby wetlands, and the associated health and ecological damages are not considered in the private market. suppose you observe the following market structure:
mpb= 800- .5q mpc= 20+ .3q
meb = 0 mec= .4q
a. find the competitive equilibrium, qc and pc, and the efficient equilibrium, qe and pe.
b. graph these curves and clearly mark the differences between these two equilibriums. you do not need to worry about scale or accurately depicting their slopes relativ to each other, your graph just needs to be qualitatively correct.
c. what is the level of deadweight loss at the competitive outcome, relative to the efficient outcome?
d. suppose the textile mill owned the rights to the wetlands, and it is negotiating with a private enviroment groups that is willing to pay the mill to produce less output. for the 800th unit of output, determine the range within which a payment would be acceptable to both parties.
e. at an output of 800 units, what is the cumulative external cost of production?

For 2018, rahal's auto parts estimates bad debt expense at 1% of credit sales. the company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at december 31, 2017. during 2018, rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.rahal's accounts receivable at december 31, 2018, are:

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

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