Homework Answers
An externality is an economic term referring to a cost or benefit incurred or received by a third party. However, the third party has no control over the creation of that cost or benefit.
An externality can be both positive or negative and can stem from either the production or consumption of a good or service. The costs and benefits can be both private—to an individual or an organization—or social, meaning it can affect society as a whole.
Refering to the figure a market with a negative externality
The efficient output level is Qb-Qd
Add Answer to:
LLUN E l Plashcards | Quizlet Sa = Marginal social cost S = Marginal private cost...
Q4 (1 point). The figure below shows the marginal social benefit, marginal private cost and marginal...
Q4 (1 point). The figure below shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced? oo tons O 2 tons О 4 tons O 8 tons 250 MSC 6200 S = MC Price and cost (dollars per ton of steel) 150 100 50 o 2 D- MSB 6 8 10 Quantity (tons of steel per week) Activate Windows Go to Settings...
Question 3 1pts Consider the market for political advertising during an election campaign. The private marginal...
Question 3 1pts Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC 200 +2Qwhere Q is the quantity of advertisements, and the private marginal benefit (demand) curve is PMB 1000 3Q. The marginal negative production externality e in the market is e-3Q (note that the externality from producing an additional advertisement increases with the number of advertisements). Which of the following statements is true? The socially efficient level...
Exercise) Consider the private marginal cost function (PMC) is given by PMC 2 + ' and...
Exercise) Consider the private marginal cost function (PMC) is given by PMC 2 + ' and there is negative marginal damage, MD = Q. The social benefit (demand curve) is SMB = 12-Q 2 Find out the competitive output. Find out the efficient output. Is there overproduction or underproduction?
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E...
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the case of an extemality, the free market wil maximize social surplus. occurs when an economic activity has a spillover cost to a bystander. C. Deadweight loss can be either a foregone benefit or the total cost of the externality to society. D. For compuing efficient outcomes, economic agente adjust the demand curve to account for negative extenalities In the case of the negative extemality,the...
Question 6 (1 point) The following equations represent the MWTP (demand) function and the private MC...
Question 6 (1 point) The following equations represent the MWTP (demand) function and the private MC functions in the market for some good where a negative externality (such as pollution) results in damages of $12 per unit of the good produced. MWTP 400 QD MPC 55+0.5QS The market equilibrium level of output will be equal to units. Question 7 (1 point) The following equations represent the MWTP function and the private MC function in the market for some good where...
please give all the answers. dont need explanations too much Marginal social cost Marginal private cost...
please give all the answers. dont need explanations too much
Marginal social cost Marginal private cost Market Demand Quantity 23. Refer to Exhibit 15-2. The deadweight loss due to externality is represented by the area a. A + B. b. C+D C. A+B+C+D. d. E+F. e. A + B+E+E. 24. A station broadcasts an unscrambled radio program over the airwaves. The program is non-excludable because a. everyone is willing to pay a market price for it. b. only one listener...
1.2.3.4. 1.With an upward sloping marginal damage cost curve that starts at the origin, total damages...
1.2.3.4.
1.With an upward sloping marginal damage cost curve that starts
at the origin, total damages for 20 units of emissions are equal to
the marginal damage cost of the 20th unit times 20.
A.True
B .False
In the following figure, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is P MSC MPC Social MWTP Private MWTP none of the choices are correct Q3 In the following figure, the...
Marginal Marginal private cost external cost social cost Marginal Quantity (tons of paper) (dollars) (dollars) (dollars)...
Marginal Marginal private cost external cost social cost Marginal Quantity (tons of paper) (dollars) (dollars) (dollars) 100 10 5 200 20 10 300 30 15 400 40 20 500 50 25 1) The table above gives the private costs and external costs of producing paper. Complete the table by finding the marginal social cost at each level of production. b. If the market is al competitive and is left unregulated and 400 tons of paper are produced, what is the...
2. Table: The following table shows the private value, private cost, and social value for a...
2. Table: The following table shows the private value, private cost, and social value for a market with a positive externality. What is the market equilibrium quantity of output for this product? What is the socially-optimal level of output in this market? How large would a per unit subsidy need to be in this market to move the market from the equilibrium level of output to the socially-optimal level of output?
Q4 (1 point). The figure below shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced? oo tons O 2 tons О 4 tons O 8 tons 250 MSC 6200 S = MC Price and cost (dollars per ton of steel) 150 100 50 o 2 D- MSB 6 8 10 Quantity (tons of steel per week) Activate Windows Go to Settings...
Question 3 1pts Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC 200 +2Qwhere Q is the quantity of advertisements, and the private marginal benefit (demand) curve is PMB 1000 3Q. The marginal negative production externality e in the market is e-3Q (note that the externality from producing an additional advertisement increases with the number of advertisements). Which of the following statements is true? The socially efficient level...
Exercise) Consider the private marginal cost function (PMC) is given by PMC 2 + ' and there is negative marginal damage, MD = Q. The social benefit (demand curve) is SMB = 12-Q 2 Find out the competitive output. Find out the efficient output. Is there overproduction or underproduction?
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the case of an extemality, the free market wil maximize social surplus. occurs when an economic activity has a spillover cost to a bystander. C. Deadweight loss can be either a foregone benefit or the total cost of the externality to society. D. For compuing efficient outcomes, economic agente adjust the demand curve to account for negative extenalities In the case of the negative extemality,the...
Question 6 (1 point) The following equations represent the MWTP (demand) function and the private MC functions in the market for some good where a negative externality (such as pollution) results in damages of $12 per unit of the good produced. MWTP 400 QD MPC 55+0.5QS The market equilibrium level of output will be equal to units. Question 7 (1 point) The following equations represent the MWTP function and the private MC function in the market for some good where...
please give all the answers. dont need explanations too much
Marginal social cost Marginal private cost Market Demand Quantity 23. Refer to Exhibit 15-2. The deadweight loss due to externality is represented by the area a. A + B. b. C+D C. A+B+C+D. d. E+F. e. A + B+E+E. 24. A station broadcasts an unscrambled radio program over the airwaves. The program is non-excludable because a. everyone is willing to pay a market price for it. b. only one listener...
1.2.3.4.
1.With an upward sloping marginal damage cost curve that starts
at the origin, total damages for 20 units of emissions are equal to
the marginal damage cost of the 20th unit times 20.
A.True
B .False
In the following figure, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is P MSC MPC Social MWTP Private MWTP none of the choices are correct Q3 In the following figure, the...
Marginal Marginal private cost external cost social cost Marginal Quantity (tons of paper) (dollars) (dollars) (dollars) 100 10 5 200 20 10 300 30 15 400 40 20 500 50 25 1) The table above gives the private costs and external costs of producing paper. Complete the table by finding the marginal social cost at each level of production. b. If the market is al competitive and is left unregulated and 400 tons of paper are produced, what is the...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago