Question

1. A marginal external cost of a product is equal to A. what the producer has...

1. A marginal external cost of a product is equal to

A. what the producer has to pay to hire resources to produce another unit.

B. the cost someone other than the producer incurs when another unit is produced.

C. what the consumer must pay when he or she buys the good or service.

D. the cost the producer incurs to produce another unit.

E. None of these answers describes a marginal external cost.

2. The graph shows the benefits and costs associated with wood pulp production. When the firm produces 5 tons of wood​ pulp, marginal private cost equals​ ______ per ton.

A. $900

B. ​$1,000

C. ​$200

D. ​$600

E. ​$700

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1.B) The cost someone other than the producer incurs when another unit is produced.

A marginal external cost of a product is equal to the cost someone other than the producer incurs when another unit is produced.

2.C) $ 200

When firm produce 5 tons of wood pulp.marginal private cost equals $ 200 per ton.

Add a comment
Know the answer?
Add Answer to:
1. A marginal external cost of a product is equal to A. what the producer has...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 9. Suppose that a wood pulp mill is situated on the bank of a river. The...

    9. Suppose that a wood pulp mill is situated on the bank of a river. The private marginal cost (MC) of producing wood pulp is given by the function MC- 10+0.5Y where Y is tons of wood pulp produced. In addition to this private marginal cost, an external cost is incurred. Each ton of wood pulp produces pollutant flows into the river which cause damage valued at S 10. The marginal benefit(MB) to society of each ton of produced pulp...

  • The graph shows the marginal costs of chemical production. Cost (dollars per ton) Draw an arrow to show the marginal external cost of producing the 3rd ton of chemicals in a week. cost is the cost of...

    The graph shows the marginal costs of chemical production. Cost (dollars per ton) Draw an arrow to show the marginal external cost of producing the 3rd ton of chemicals in a week. cost is the cost of producing an additional unit of a good O A. that falls on people other than the producer of the good O B. that is borne by the buyer of the good that falls on the entire society C, O D. that is borne...

  • A certain production process generates both external costs and external benefits. The marginal private cost (NPC/and...

    A certain production process generates both external costs and external benefits. The marginal private cost (NPC/and marginal external cost (MEC) functions are Increasing. while the marginal private benefit (MPB and marginal external benefit (MEBlfunctions are decreasing. The socially optimal (SO) as well as the individually rational (IR) output level are given by positive and finite numbers. When will the IR output level be higher than the SO one? provided that MEC SO-MEB SO b) provided that MEC SO MEB so...

  • 19. The marginal external cost of dumping wastewater into a watershed is $100 per unit of effluent. Efficiency can be a...

    19. The marginal external cost of dumping wastewater into a watershed is $100 per unit of effluent. Efficiency can be achieved by levying an effluent fee at a) a rate high enough to stop firms from dumping altogether. b) the firms' current marginal willingness to pay to dump. c) $100. d) None of the above. 20. An economy is efficient if a) resources are employed where they have highest economic value. b) the marginal willingness to pay (MWTP) for a...

  • 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...

  • 1. Individual A and B have the following marginal benefits for private good X: MBA =...

    1. Individual A and B have the following marginal benefits for private good X: MBA = 10 - XA MBg = 10 - XB While the cost of producing each unit is 2 dollarsyi.e., MC = 2). You are asked to: a. On a graph, find the market demand function for private good X (hint: make sure to label the angles, elbows, and corners as needed). b. Find the market equilibrium. e. Find consumer A quantity demanded, and consumer B...

  • We are considering a market with marginal cost of P=100+2Q and a demand of P=500-2Q. Use...

    We are considering a market with marginal cost of P=100+2Q and a demand of P=500-2Q. Use that information to answer the following questions. a. Find the market equilibrium (price and quantity in the market). b. Find producer and consumer surplus. c. Now imagine production of this good created a negative externality of 1$ per unit of output. Find the socially optimal outcome (price and quantity) taking this externality into account. d. Find consumer and producer surplus at the socially efficient...

  • Externalities I Perhaps ironically, air conditioners produce heat as a waste product (to say nothing of...

    Externalities I Perhaps ironically, air conditioners produce heat as a waste product (to say nothing of any externalities from energy consumption). Air conditioner’s waste warm up nearby outdoor areas. This effect can be substantial in dense cities. Suppose that the following are the benefits/ costs from running an air conditioner on a 90 degree day (Q is the temperature reduction enjoyed by the consumer of the air conditioning): MPB=MSB=30-Q MPC=10 External Cost=5 a) Graph the private/social marginal benefit/cost curves described...

  • QUESTION 4 Assuming each unit of variable inputs cost the same, marginal cost will increase as...

    QUESTION 4 Assuming each unit of variable inputs cost the same, marginal cost will increase as output increases if O Variable cost is rising. Total cost is rising Marginal physical product is rising. Marginal physical product is falling QUESTION 5 In the short run, when a firm produces zero output, total cost equals: O fixed costs. variable costs O zero. O average total cost. QUESTIO Economic cost includes: O Only the value of resources used to produce a good for...

  • 1. Consumer surplus for an individual buyer is equal to: A) the marginal cost of the...

    1. Consumer surplus for an individual buyer is equal to: A) the marginal cost of the good minus the consumer's willingness to pay for the good. he consumer's willingness to pay for the good minus the marginal cost of C) D) producing the good. the price of the good minus the marginal cost of producing the good. the consumer's willingness to pay for the good minus the price of the good. Use the following to answer question 2: Figure: Comparative...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT