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Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. PROCE (Dollars per unit) QUANTITY (Units) Supply bemand Demand Supply

Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. PROCE (Dollars per unit) QUANTITY (Units) Supply bemand Demand Supply

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 2.4P
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PRICE (Dollars per unit) QUANTITY (Units) Demand Supply With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be socially optimal quantity. than the Which of the following generate the type of externality previously described? Check all that apply. Paolo has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season. The city where you live has turned the publicly owned land next to your house into a park, causing trash dropped by park visitors to pile up in your backyard. A leading electronics manufacturer has discovered a new technology that dramatically improves the picture quality of plasma televisions. Firms of all brands have free access to this technology. Your roommate Van has bought a bird that keeps you up at night with its chirping.
Transcribed Image Text:PRICE (Dollars per unit) QUANTITY (Units) Demand Supply With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be socially optimal quantity. than the Which of the following generate the type of externality previously described? Check all that apply. Paolo has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season. The city where you live has turned the publicly owned land next to your house into a park, causing trash dropped by park visitors to pile up in your backyard. A leading electronics manufacturer has discovered a new technology that dramatically improves the picture quality of plasma televisions. Firms of all brands have free access to this technology. Your roommate Van has bought a bird that keeps you up at night with its chirping.
Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. ? POCE (Dots per un QUANTITY (Units) Supply Demand Demand Supply With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be socially optimal quantity. than the
Transcribed Image Text:Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. ? POCE (Dots per un QUANTITY (Units) Supply Demand Demand Supply With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be socially optimal quantity. than the
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