There is an oil refinery located on a river. a fish farm is located in the bay, and is adversely affected by the oil refiner’s water pollution. more oil produces more pollution, and more pollution increases the fish farmer’s costs. the price for refining a barrel of crude oil is po = 200, and the price of a unit of fish is pf = 500. let o and f represent the quantities of oil refined and fish produced by the two firms, respectively. the oil refiner’s cost is co(o) = o^2, and the fish farmer’s cost function is cf(f, o) = f^2+o^2. the fact that o shows up in cf reflects the negative externality.

(a) how much do the firms produce in a decentralized market equilibrium?

(b) show that the decentralized market solution is pareto inefficient.

(c) find the pareto efficient allocation of o.

Responsible for setting the goals and planning for the future as well as leading and controlling the work of others. out the decisions of top management. often responsible for various departments such as the production, marketing, and accounting departments. process or function of planning organizing leading and controlling. the resources arranged in an orderly and functional way to accomplish goals and objectives. the company on track and making sure goals are met. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. act or process of creating goals and objectives as well as the strategies to meet them. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. how the firm is structured and who is in charge of whom. direction and vision

Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4

The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?