The following diagram shows the market for medical checkup. What are the equilibrium price and quantity of medical checkup? Which kind of externality problems exists in the market for medical checkup? How does this externality problem affect the efficiency of the market? Explain in detail. How can the government solve this externality problem? Explain in detail. (a) The following table shows the relationship between the number of workers employed andoutputs at Wendy's Cafe.Cups of Coffee Produced(per day)Number of Workers50951351702006.225Suppose the market price of cach cup of coffee is $20, and the market daily wage for eachworker is S800. In order to maximize profit, how many workers should Wendy's Cafeemploy? Explain and show the steps of your calculations.(b) The following diagram shows the market for medical checkup.20PV400 500What are the equilibrium price and quantity of medical chbeckup?i.Which kind of externality problems exists in the market for medical checkup? Howdoes this externality problem affect the efficiency of the market? Explain in detail.iii. How can the government solve this externality problem? Explain in detail.

The equilibrium price and quantity are obtained where market demand equals market supply. An…

Answered: (a) The following table shows the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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The following diagram shows the market for medical checkup.

What are the equilibrium price and quantity of medical checkup?
Which kind of externality problems exists in the market for medical checkup? How does this externality problem affect the efficiency of the market? Explain in detail.

How can the government solve this externality problem? Explain in detail.

(a) The following table shows the relationship between the number of workers employed and
outputs at Wendy's Cafe.
Cups of Coffee Produced
(per day)
Number of Workers
50
95
135
170
200
6.
225
Suppose the market price of cach cup of coffee is $20, and the market daily wage for each
worker is S800. In order to maximize profit, how many workers should Wendy's Cafe
employ? Explain and show the steps of your calculations.
(b) The following diagram shows the market for medical checkup.
20
PV
400 500
What are the equilibrium price and quantity of medical chbeckup?
i.
Which kind of externality problems exists in the market for medical checkup? How
does this externality problem affect the efficiency of the market? Explain in detail.
iii. How can the government solve this externality problem? Explain in detail.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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