Option C (Qoptimum )
Explanation-
When a positive externality is present, the market produces less than the socially optimal quantity of the good, since a benefit to society that is not captured by the individual. Individual only care about marginal private benefit and marginal private cost.
Q2 Is alternative lable for Q optimum.
Qoptimum > Qmarket
Figure 10-12 Price Supply External benefit Line 2 Line 1 ei 22 Quantity Refer to Figure...
Figure 10-11 Price 63 Supply (private cost) 42 36 Social value (private value and external benefit) 24 15 Demand (private value) 0 240 420 Quantity Refer to Figure 10-11. The socially optimal quantity of output is O a. 240 units, since the value to the buyer of the 240th unit is equal to the cost incurred by the seller of the 24oth unit. O b. 240 units, since the value to society of the 240th unit is equal to the...
(Figure: External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it The sixth unit of the vaccine has a social value of_and a private cost of_ Price $15 14 13 12 10 SV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...
Figure 3-2 Price Supply. S Quantity Refer to Figure 3-2. A decrease in the number of firms in the market would be represented by a movement from O A) A to B. OB) B to A. OC) S1 to 52 OD) S2 to 51.
Price 10 8 6 4 2 2 Quantity in the amount of Refer to the figure above. At a price of 3, the market will experience units excess demand; 5 units excess supply, 7 units O equilibrium: 4 units O excess supply 3 units
Question Completion Status: Figure: External Benefit Price $15 - No 8 SV NI 8 9 10 11 12 13 14 15 Quantity 1 2 3 4 rence Ref 10-11 5 6 7 (Figure. External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults. The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it. The efficient number of vaccinations...
Question Completion Status: QUESTION 10 Figure: External Benefit Price $15 ONWAY SV 1 2 3 4 ference Ref 10-11 5 6 7 8 9 10 11 12 13 14 15 Quantity figure: External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults. The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it. In this figure depicting the market...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
Price (S) 100T 500 Quantity Figure 4 15. Refer to Figure 4. Suppose there is a $30 external benefit associated with the production of this good. What is the most that 3rd parties would be willing to pay to have either side of the market internalize the external benefit (i.e, move from the competitive market outcome to the efficient outcome)? a) $0 b) $6,000 c) $15,000 d) $21,000
Figure 9-11 Price Domestic Supply World Price Domestic Demand Quantity Refer to Figure 9.11. Consumer surplus in this market before trade is O a. A Ob. B+C O c. A+B+D. O d.c. Supply Demand Refer to Figure 7-21. Which area represents consumer surplus when the price is P1? O a. A O b.B ос. С To a.D
Refer to the figure below. Supply 24 PRICE 16 10 Demand 70 100 QUANTITY The amount of the tax per unit is $8. $14 $6. $18. Question 10 Refer to the figure below. Supply 7 6 5 PRICE Price Ceiling 3 2 Demand 1 30 60 90 120 150 180 210 240 QUANTITY The price ceiling cause quantity supplied to exceed quantity demanded by 60 units. demanded to exceed quantity supplied by 90 units. demanded to exceed quantity supplied by...