Question

NAME: Assignment 7-Complete and hand in at the beginning of your scheduled discussion section (10/29-11/4) 1. The noise that is associated with bans might be considered a milance by some members of a neighborhood Show graphically a market for bars where the member of bars might be greater than the social optimum when noise is considered Consider the following graph when answering questions 2-5. 2. How many units will the market in equilibrium produce and sell? a 01 b. Q2 c. 03. d 04. 3. Which amount of output is socially optimal? a Q1 b. 02 C. 03. d. 04. 4. This good could reasonably be: a. Cigarettes b. Cars c. Education d. None of the above.

Answer 1

smc емс Qs QC Bars SME-Social Marginal cost Pmc - Private Marginal cost Socially optimal quantity is as which private market equilibrium quantity at less than is De Market equilibrium reaches at Demand = Supply Social optimum occus at Social value = supply c. Education Because education has positive externality