Miles Petersen
4-2 Simulation Checkpoint Assignment
ECO-201: Microeconomics
21 November 2021
Without Policy Inventions
Unit
Price
Value
Nuisance
$3.93
$1.70
$0.20
$3.38
$0.20 permit payoff 10.28 total nuisance p -51.00
Total
$0.95
History 1
Round
2
Robot Dogs Sole
1
1
Your Nulsance
$0.20
$0.20
Markel Payoff
$1.85 $-2.2
$2.23
Permit Market Payott
$-1.28
Total Payoff
$1.85
$2.23
With Policy Inventions
Unit
Price
Value
Nuisance
$4.46
$1.70
10.13
$3.62
$3.32 total nuisance
$0.13 -$1.33
Total
$1.73
History
Round
1
Robot Dogs Sold
2
Your Nuisance
$0.13
Market Payofr
$3.6
Answer to question 1.
Tools that are accessible to the public authority to address market failure are taxes, subsidies,
and trade restrictions.
Answer to question 2.
They can put in price ceilings which is really important to understand. When placing a bid, I
notice that the nuisance charge can likewise be applied to your item with your proposition.
For my situation, it was the yapping commotion that the mechanical canine made. Sell your
item at the right cost or you will have a lack of products.
Answer to question 3.
The government interventions are specifically price ceiling and pricing floor. Price ceiling
and price floor make the cost of a product to never exceed the price cap but also never go
below the minimum cost. Consumers can take the risk of offering a lower bid since they
realize the dealer should acknowledge because of the chance of the buyer exiting. The buyer
should point low however not very low as to be missed by another purchaser. Producers will