If the marginal social benefit exceeds the marginal private benefit, the efficiency of the market can be improved with a   tax. price floor monopoly subsidy

Q: Each of the following is true of a positive externality except The quantity after a corrective…

A: The false statement or exception is “the quantity after a corrective subsidy is less than the…

Q: How the subsidies can solution the externalities problem

A: An externality is a cost or benefit of an economic activity experienced by an unrelated third party.…

Q: The forge produces iron (x ) with the cost function C„(x) = 31x², while it can sell the iron at the…

A:

Q: S1 S2 D2 F D1 E A Quantity Refer to the provided supply and demand graph. S, and D, represent the…

A: Given that S1 and D1 are the supply curve and demand curve respectively. S2 and D2 represents the…

Q: Social efficiency consists of which of the following: the sum of consumer and producer surplus the…

A: The sum of consumer surplus and producer surplus is total surplus.  i.e., Total surplus = Consumer…

Q: If the social cost of producing a good is higher than the private cost then: *   a.The price of…

A: Externality refers to cost or benefit imposed by the consumption or production  of a good on the…

Q: Alcohol taxes that are used by government as an incentive for distillers and beer wholesalers to cut…

A: There is negative externality generated due to consumption of alcohol. Thus government imposes the…

Q: In the market for gasoline the demand curve is D: Q = 1426 - P and the supply curve is S: Q = P.…

A: When tax is placed on consumers demand decreases and it shifts to the left.

Q: Taxing the production of the good

A: Explanation:   Suppose that the marginal social value of manufacturing an honest is bigger at the…

Q: Given a market model as follow: Q1 = a – bP + eP2 - fP3 (a, b,e, f > 0) (c, d, g,h > 0) (1) (2) Q1 =…

A: In the market model, we have two equations. One denotes he equation for the quantity demanded in the…

Q: Suppose the market for product X is described by the following equations. QD=600-2P and QS= -150+3P,…

A:

Q: What areas in the above graph represent the tax revenue from a Pigovian tax that internalizes the…

A: A Pigovian tax is a tax placed on any good which creates negative externality.

Q: Excessive consumption of soft drinks is positively correlated to the incidence of diabetes. Assume…

A: When the consumption or production of a good imposes additional cost to the customer that is not…

Q: If at the current market equilibrium level of production, the marginal social benefit from consuming…

A: The externality would result in the effect of another party on another party's production of good or…

Q: ced i

A: Given : Supply : Q=4P Demand : Q=296-2P Negative Externality = $5 (assumed)

Q: Externalities exist when     social costs are different from private costs. social costs are…

A: Meaning of Market Failure: The term market failure refers to the situation under which there…

Q: According to a report from the US Census Bureau, "the average lifetime earnings of a full-time year…

A: An externality is a cost or benefit which imposed on a third party and not incurred or received by…

Q: Consumers that take advantage of a public good without having to pay for it are known as A Tax…

A: please find the answer below.

Q: How will the imposition of Pigovian taxes impact consumer surplus, producer surplus, and total…

A: When Pigouvian taxes has bene impose and it has been a supply over the economic activity, that would…

Q: True/False:  When a per-unit tax is imposed on a polluter, the marginal social cost curve shifts to…

A: Externality refers to cost or benefit imposed on society due to economic activity.

Q: Assume Country X has an electricity market with supply and demand being given below: Qo = -P + 200…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: A group of researchers has estimated the marginal social benefits of improvements in soil fertility…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: Consider a product market with three consumers X, Y and Z with demand function PX = 6 - QX, PY = 12…

A: Public goods are the goods which are non-excludable and non-rival in nature. Non-rival are the goods…

Q: if the marginal social benefit exceeds the marginal private benefit, the eficiency of the market can…

A: if the marginal social benefit exceeds the marginal private benefit, the efficiency of the market…

Q: Question 11 In any Pigouvian taxation, the tax on the producer (that causes negative production…

A: Tax is the compulsory payment that is imposed by the government. When taxes are imposed on the goods…

Q: Which of the following is true of an unregulated market for barbecue if its production creates…

A: There is an external cost of production of barbecue.

Q: h creates no externalities is _____________________ by a free competitive market.     A.…

A: Private good is a product or service being produced by a business being privately owned and…

Q: Consider a product market with three consumers X, Y and Z with demand function QX = 6 – PX, QY = 3 –…

A: Given the demand curves for X, Y, Z QX = 6 – PX, QY = 3 – ½PY and QZ = 12 – PZ

Q: P A P2 P1 Tax: E D P3 Q2 Q1 Which area(s) are part of the deadweight loss from the tax? (Select all…

A: Due to tax, there are some potential buyers or sellers lefts the market. And creates DWL in the…

Q: Identify a newspaper article that illustrates a market failure in Barbados. Ensure that you provide…

A: The market failure due to the inefficient allocation of resources it is mainly due to the emergence…

Q: How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline…

A: Elasticity of demand is the proportional change in demand due to one unit change in price.…

Q: If there are no externalities a competitive market achieves economic efficiency. If there is a…

A: the correct answer is Too little of the good will be produced

Q: The graph below represents a simplified hypothetical version of the market for medical procedures in…

A: Price ceiling is the margin set by the government of the economy deciding the maximum price the…

Q: if the marginal social benefit exceeds the marginal private benefit, the eficiency of the market can…

A: Marginal Private Benefit is referred to as the additional benefit derived by consuming one extra…

Q: Consider a market where supply and demand are given by Qxs = −16 + Px and Qxd = 92 − 2Px . Suppose…

A: Suppose, the given supply and demand function is as follows.

Q: 47.  Doctors often complain that the patents of pharmaceutical companies make newer medicines hard…

A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…

Q: Consider the market for soft drinks. A corrective tax of $ per unit will move the market to the…

A: Here the market creates negative externality as social cost is higher than current market…

Q: The graph depicts the market for a good that creates a negative externality. Move the triangle…

A: Qs is the socially optimal quantity level that occurs at the intersection point of the Supply…

Q: In the graph above, what areas comprise producer surplus after a Pigovian tax has fully internalized…

A: Pigouvian taxes are remedial expenses demanded on every unit of yield an externality-generator…

Q: If there are no externalities a competitive market achieves economic efficiency. If there is a…

A: Externalities are the cost or benefits that are incurred or received by the third person by the deal…

Q: The graph shows the private supply and demand curves for spaceships in Spacelandia. The craft are…

A: In a market, negative externality needs to the rectified or reduced by the government to increase…

Q: The market for plasticans is perfectly competitive. Market Supply is given by Q=5P and Market Demand…

A: Market Supply is given by, Q=5P and Market Demand is given by, Q=373-3P and, positive…