A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (iv) Social cost curve (v) Market equilibrium level of output (vi) Efficient level of output

A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (iv) Social cost curve (v) Market equilibrium level of output (vi) Efficient level of output

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 1.1P: (Optimal Provision of Public Goods) Using at least two individual consumers, show how the market...

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Question 1 A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (iv) Social cost curve (v) Market equilibrium level of output (vi) Efficient level of output

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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(Optimal Provision of Public Goods) Using at least two individual consumers, show how the market demand curve is derived from individual demand curves (a) for a private good and (b) for a public good. Once you have derived the market demand curve in each case, introduce a market supply curve and then show the optimal level of production.
1. What is the impact of the global-positioning anti-theft device on the following below: a. Social cost curve b. Market equilibrium level of output c. Efficient level of output
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Question 1 A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (i) Private benefit curve (ii) Social benefit curve (iii) Private cost curve (iv) Social cost curve (v) Market equilibrium level of output (vi) Efficient level of output (a) Identify the type of market failure, explain why it occurs and provide a solution (i) An auto repair shop convinces you that you need a $20,000 valve job when all you need is an oil change. (ii) Everyone in the neighbourhood would benefit if an empty lot were turned into a park but no entrepreneur will come forward to finance the transformation (iii) A barking dog in the backyard (b) Define the tragedy of the commons in your own words. (c) Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer’s pasture does not…
Question 1 A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (i) Private benefit curve (ii) Social benefit curve (iii) Private cost curve (iv) Social cost curve (v) Market equilibrium level of output (vi) Efficient level of output Question 2 (a) Identify the type of market failure, explain why it occurs and provide a solution (i) An auto repair shop convinces you that you need a $20,000 valve job when all you need is an oil change. (ii) Everyone in the neighbourhood would benefit if an empty lot were turned into a park but no entrepreneur will come forward to finance the transformation (iii) A barking dog in the backyard (b) Define the tragedy of the commons in your own words. (c) Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer’s pasture does…
A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (1) Social cost curve (2) Market equilibrium level of output (3) Efficient level of output
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