Question

What's Hot 3 HP Games Imported From IE U SGIVIUG 13. Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic compounds, which are a type of air pollution. As a result, the cost of production to society is greater than the private cost of production. The marginal private cost of production is represented by MC, and the marginal social cost is represented by MC2 Suppose the government decides to impose a Pigovian tax to bring about an efficient level of output. What size should the tax be? Price (s per ton) per The government should levy a tax of $ ton produced. (Enter your response as a whole number) 504 0 10 12 14 16 Quantity (millions of tons per year)

Answer 1

The image of question 13 is not properly cropped. the answer to question 14 is as follows:

Answer 14:

14. Consider the market for dams along a river, illustrated in the figure to the right, where S, is marginal private cost and D is marginal private benefit. Dams are an example of a (1) - Suppose that the consumption of dams along a river generates a positive externality of $50 per unit Price of dams along a river (per square foot) If so, then according to the figure, the optimal quantity of dams along a river for society is units (Enter your response as an integer) 1 2 3 4 5 6 7 8 9 10 Quantity of dams along a river 11 12 13 (1) public good common resource

The marginal private benefit curve will shift upwards by 50 units to become the marginal social benefit curve.

Dams are an example of Public Good.

The optimal quantity occurs at the point where the marginal social benefit curve intersects the marginal cost or supply curve. Thus,optimal quantity of dams along the river is 8 units.