The government could correct the difference between theequilibrium output level and the efficient output level...
The government could correct the difference between the equilibrium output level and the efficient output level by
taxing users so that less is used.
using a regulation that requires firms to externalize the internal costs
shifting the demand curve down.
using a regulation that requires firms to internalize the external costs
Homework Answers
Add Answer to:
The government could correct the difference between theequilibrium output level and the efficient output level...
You are an industry analyst that specializes in an industry where the market inverse demand is...
You are an industry analyst that specializes in an industry where the market inverse demand is P = 300 - 5Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 14Q. a. What is the socially efficient level of output? ______ units b. Given these costs and market demand, how much output would a competitive industry produce? ______ units c. Given these costs and market demand, how much output would...
You are an industry analyst that specializes in an industry where the market inverse demand is...
You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q. Instructions: Enter your responses rounded to the nearest two decimal places. a. What is the socially efficient level of output? _____units b. Given these costs and market demand, how much output would a competitive industry produce? ____units c. Given...
Problem M6-01
You are an industry analyst who specializes in an industry where the market inverse demand is P = 200 - 4Q. The external marginal cost of producing the product is MCExternal= 6Q, and the internal cost is MCInternal = 12Q.a. What is the socially efficient level of output?b. Given these costs and market demand, how much output would a competitive industry produce?c. Given these costs and market demand, how much output would a monopolist produce?d. Discuss actions the government might...
To achieve the efficient level of national defense, A. the government can provide national defense because...
To achieve the efficient level of national defense, A. the government can provide national defense because it is a common resource. B. the government can provide national defense because it is a private good. C. private firms can provide national defense because it is a private good. D. the government could provide national defense because it is a public good. E. None of the above answers is correct.
You are an industry analyst that specializes in an industry where the market inverse demand is...
You are an industry analyst that specializes in an industry where the market inverse demand is P = 250 - 6Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 14Q. Instructions: Enter your responses rounded to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given...
Does a monopolistic competitor produce more or less output as compared to an efficient level of production? Explain. What are the benefits and drawbacks of this? Should the government intervene to alt...
Does a monopolistic competitor produce more or less output as compared to an efficient level of production? Explain. What are the benefits and drawbacks of this? Should the government intervene to alter this?
In an energy efficient world riding bicycles is becoming more and more pop- ular, resulting in a large number of custom...
In an energy efficient world riding bicycles is becoming more and more pop- ular, resulting in a large number of customers. However, customers are gen- erally indifferent between brands and believe that all bicycles are the same making the market perfectly competitive. Unfortunately, making bicycle frames requires special skills so the supply of workers in this industry is upward-sloping, and the wages earned by frame makers increase as the in- dustry output increases. (Total 12 Marks) Firms in this market...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
16) Consider a macro model with a constant price level and demand-determined output. A rise in...
16) Consider a macro model with a constant price level and demand-determined output. A rise in the net tax rate ________ the simple multiplier and ________ equilibrium national income. A) lowers; raises B) lowers; lowers C) raises; raises D) lowers; has no effect on E) raises; has no effect on 17) Other things being equal, an exogenous fall in the domestic price level leads to a rise in private-sector wealth. As a result, there is A) a downward shift in...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive firm owns a key resource, but a monopoly firm does not. b. A competitive firm is a price taker, and a monopoly is a price maker. c. A competitive firm produces output at a lower cost than a monopoly firm. d. A competitive firm is subject to government regulations, but a monopoly firm is not. 2.) What is the main social problem caused by...
In an energy efficient world riding bicycles is becoming more and more pop- ular, resulting in a large number of customers. However, customers are gen- erally indifferent between brands and believe that all bicycles are the same making the market perfectly competitive. Unfortunately, making bicycle frames requires special skills so the supply of workers in this industry is upward-sloping, and the wages earned by frame makers increase as the in- dustry output increases. (Total 12 Marks) Firms in this market...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
Most questions answered within 3 hours.
-
Describe how to distinguish true motility from brownian motion
and fluid flow when viewing a wet...
asked 1 minute ago -
A manufacturer of game controllers is concerned that its
controller may be difficult for left-handed users....
asked 3 minutes ago -
Water at gauge pressure of 3.8 atmospheres at street level
enters an office building at 0.60...
asked 17 minutes ago -
Quick question, I want to know how to convert decimal numbers to
binary number, when i...
asked 38 minutes ago -
You found out that now you are going to receive payments of
$8,500 for the next...
asked 42 minutes ago -
17.
Technician A says that leaking components are usually repaired
rather than replaced. Technician B says...
asked 42 minutes ago -
A) An Operon is:?
1- A gene that affect another gene
transcription.
2. A gene coding...
asked 49 minutes ago -
When opening a file, use this method to determine whether a file
exists before you attempt...
asked 53 minutes ago -
Sales total $300,000 when variable costs total $180,000 and
fixed costs are $60,000. Breakeven sales total:...
asked 1 hour ago -
1)
To calculate the depth of a water well, an explorer drops a stone and with...
asked 57 minutes ago -
0.429-g sample of gas occupies 125 mL at 60. cm of Hg and 25°C.
The molar...
asked 59 minutes ago -
The
pH of a 0.90M solution of boric acid (H3BO3) is measured to be
4.64.
Calculate...
asked 1 hour ago