Question

8. Which of the following activities create a negative externality? a. cleaning up the sidewalk on your block b. keeping a junked car parked on your front lawn C. repainting the house you live in to improve its appearance d. graduating from college 9. Which of the following is an example of a negative externality? a. closing down a segment of a beach because of an oil spill b. purchasing a home that has an unobstructed view of rolling hills C. receiving a failing grade in a college course d. not qualifying for financial aid because your parents make too much money 10. If your neighbor burns auto tires in the yard and you can smell them and cannot see sunlight because of the black smoke, you are experiencing a. a private cost. b. a positive externality. c. a negative externality. d. a private benefit. 11. Suppose there is a duopoly (a two firm oligopoly market). Each firm (A and B) can produce 1,000 units or 2,000 units. The profits (payoffs) for each firm are in the table below. The first number in each outcome is Firm A's profit while the second number is Firm B's profits. Firm B Produce | 1 000 Units Produce 2 000 Units Produce 1 000 Units (100, 100) (10, 150) Firm A Produce 2 000 Units (150, 10) (30,30) a. b. Does each firm have a dominant strategy and if so what is it? What is the Nash equilibrium or equilibria (multiple equilibrium)? Show your logic, briefly.

Answer 1

8):-B is right option

keeping a junked car parked in your front lawn

negative externality is defined as the too much of the good will be produced at market Equilibrium

9) :- A is right option,

Negative Externalities is defined as the Cost or harmful effects of an activity on a third party.

For example Production imposes cost on people not directly involved in making that production decision.

Examples of Negative externalities are

Air pollution from factories because of use of
Pollution from fertilisers
due Industrial waste and not effectively use of available in resources
Noise pollution is also cause of negative externalities
Collapsing fish stocks is aslo cause of it
Methane emissions is Harmful too

10) ;-c is right option, negative Externality

Negative Externalities is defined as the Cost or harmful effects of an activity on a third party.

For example Production imposes cost on people not directly involved in making that production decision.

11) :- B is right option

Property right is defined as the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it.

Really sorry of for question number 9 if it is wrong sorry