A good that has an external cost is a. produced in the efficient quantity in the...
Homework Answers
Answer- Produced in greater than the efficient quantity in the free market. (Option B)
Explanation-:
*When activity of an economic agent directly affect welfare of
others in a way i.e.. outside market mechanism then this effect is
called as externality. Externality adversely affects economic
efficiency.It can be negative (External cost) or positive (External
Benefit).
*In case of negative externality external cost is created by the action of an economic agent.In presence of externalities there is divergence between private and social cost. As a result private optimum deviates from social optimum.
* In particular when a good generates negative externality then too much of output is produced relative to efficient output. It happens because private efficient output is determined by equality of marginal benefit and marginal private cost.
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good that has an external cost is
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produced in the efficient quantity in the...
31. A good that has an external cost is a. produced in the efficient quantity in...
31. A good that has an external cost is a. produced in the efficient quantity in the free market. b. produced in greater than the efficient quantity in the free market. c. produced in less than the efficient quantity in the free market. d. not produced in the free market. 35. Which one of the following would not differentiate one product from another under monopolistic competition? a. location. b. special services that go along with the purchase of a product....
8) The quantity of a public good produced by private provision A) is equal to the...
8) The quantity of a public good produced by private provision A) is equal to the efficient quantity. B) is less than the efficient quantity. C) is greater than the efficient quantity D) maximizes total public benefit. E) maximizes net public benefit.
_________ are public goods. If bureaucrats want to ensure the efficient quantity is produced, _______. A....
_________ are public goods. If bureaucrats want to ensure the efficient quantity is produced, _______. A. Cars; marginal cost must be equal to marginal benefit. B. Life-saving drugs; marginal social benefit must be greater than marginal cost. C. Highways; marginal social benefit must be equal to marginal social cost. D. Factories; marginal social cost must be greater than marginal cost. E. U.S. exports; marginal cost must be greater than marginal benefit.
Based on the graph shown here, what is the socially optimal (efficient) quantity of this good...
Based on the graph shown here, what is the socially optimal (efficient) quantity of this good ? Price ($) MSC $25 Supply (MPC) $15 $12 $8 Demand (MB) $2 50 100 Quantity O greater than 100 O 100 O between 50 and 100 O 50 less than 50
QUESTION 31 If a good has zero external costs, then social marginal cost is less than...
QUESTION 31 If a good has zero external costs, then social marginal cost is less than marginal private cost. social marginal cost equal private marginal cost. we need more information to determine the relationship between private and social costs. social cost is greater than private marginal cost. QUESTION 32 A fiscal action that is initiated by an act of Congress is called automatic fiscal policy. discretionary fiscal policy. generational fiscal policy the government expenditure multiplier. QUESTION 33 The three main...
14. Refer to Figure 3. Assume that production of this good generates a $30 per unit external cost. How much total surpl...
14. Refer to Figure 3. Assume that production of this good
generates a $30 per unit external cost. How much total surplus is
generated in this market at the efficient outcome?
a) $375
b) $675
c) $1,250
d) $2,175
Price (S) 50 50 Quantity Figure 3
1. If you can prevent someone from consuming a good, that good is called A. nonrival....
1. If you can prevent someone from consuming a good, that good is called A. nonrival. B. rival. C. excludable. D. a public good. E. nonexcludable. 2. To hunters, deer in the woods are an example of a A. private good. B. natural monopoly. C. public good. D. common resource. E. public resource. 3. _________ are public goods. If bureaucrats want to ensure the efficient quantity is produced, _______. A. Factories; marginal social cost must be greater than marginal cost....
If the correct amount of pollution is being produced now, which of the following is true? The...
If the correct amount of pollution is being produced now, which of the following is true? The average cost of pollution: a. is exactly equal to the average cost of the pollution reduction. b. can be greater than, equal to, or less than the costs of pollution reduction. c. reduction is greater than the cost of the pollution at all levels of pollution. d. reduction is less than the cost of the pollution at all levels of pollution. A public utilities regulator sets prices equal...
The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced.
The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the quantity of milk sold is A) less than the efficient level of output. B) greater than the efficient level of output. C) 100 million gallons greater than the efficient level of output. D) the efficient level of output.
Suppose the government is producing a public good. If the marginal benefit of the last unit...
Suppose the government is producing a public good. If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit, to achieve the efficient amount of production, what should be done? A. The government should produce more units. B. The government should cease production. C. Private firms should take over the production and sale of the good. D. Nothing because the government is already producing the efficient quantity of the...
8) The quantity of a public good produced by private provision A) is equal to the efficient quantity. B) is less than the efficient quantity. C) is greater than the efficient quantity D) maximizes total public benefit. E) maximizes net public benefit.
Based on the graph shown here, what is the socially optimal (efficient) quantity of this good ? Price ($) MSC $25 Supply (MPC) $15 $12 $8 Demand (MB) $2 50 100 Quantity O greater than 100 O 100 O between 50 and 100 O 50 less than 50
QUESTION 31 If a good has zero external costs, then social marginal cost is less than marginal private cost. social marginal cost equal private marginal cost. we need more information to determine the relationship between private and social costs. social cost is greater than private marginal cost. QUESTION 32 A fiscal action that is initiated by an act of Congress is called automatic fiscal policy. discretionary fiscal policy. generational fiscal policy the government expenditure multiplier. QUESTION 33 The three main...
14. Refer to Figure 3. Assume that production of this good
generates a $30 per unit external cost. How much total surplus is
generated in this market at the efficient outcome?
a) $375
b) $675
c) $1,250
d) $2,175
Price (S) 50 50 Quantity Figure 3
The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the quantity of milk sold is A) less than the efficient level of output. B) greater than the efficient level of output. C) 100 million gallons greater than the efficient level of output. D) the efficient level of output.
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