marginal private benefit

Q: There are two workers. Each worker’s demand for a public good is P = 20 − Q. The marginal cost of…

A: Step 1: Number of workers = 2 Demand for public good: P=20-Q MC of public good: MC=$24 In case of…

Q: Suppose that demand for anchovy pizza is given by PD=50−QD, and the supply of anchovy pizza is given…

A: Bad smell from pizza generates negative externality to third party who is not a part of transaction.

Q: Assume that air pollution from a copper smelter imposes external costs on people who live near the…

A: According to the Coase theorem, individual persons (or enterprises) may negotiate a mutually…

Q: There are three industrial firms in Happy Valley. Firm Initial Pollution Level Cost of Reducing…

A: Tradable pollution permits or cap and trade is the situation where the government decided to reduce…

Q: Assume citizens of Destrahan are complaining that Shell Chemical and Dow Chemical are polluting the…

A: Shell Chemical: Total pollution = 40 tonnes Reducing pollution cost: $500 Dow Chemical: Total…

Q: Comparing Private and Socially Optimal Outcomes with Externalities in a Table: Interactive Practice…

A: Negative externalities means the effect of economic activities on other person's wellbeing…

Q: demand for the X is described by the function q=240-2p. the private marginal cost of producing X is…

A: Externalties refers to the cost or benefits of an economic transaction incurred on a third party who…

Q: If policymakers use a pollution tax to control​ pollution, the tax per unit of pollution should be…

A: If policymakers use a pollution tax to control​ pollution, the tax per unit of pollution should be…

Q: please answer all.  5. Correcting for negative externalities - Regulation versus tradablepermits…

A: please find all the answers below.

Q: PS=QS.  Anchovy pizza smells bad.  The bad smell imposes an external cost on anyone near the pizza…

A: The bad smell imposes an external cost to third party who is not directly involved in the…

Q: ssuming that firms hold well-defined rights to pollute and identifying (marginal) benefits and costs…

A: The following problem in relation to environmental economics has been answered as follows:

Q: Consider the following supply and demand curves for buying shrimps. Shrimps produce positive…

A: The socially efficient output level is the quantity when the sum of producer surplus and consumer…

Q: The demand for clean streets in a neighborhood is Q = 125 – P. For each of the following questions,…

A: The demand for the cleans streets in a neighbourhood: Q = 125-P or P = 125 – Q Where P is the price…

Q: The inverse demand for energy-efficient refrigerators is P = 2,000 – 10Q, where Q measures…

A: The marginal external benefit is added to marginal private benefit to get marginal social benefit.…

Q: Randwick is divided in three districts. In District 1, the demand for bike paths, a public good, is…

A: A public good are non-rival and non-excludable. Non-rival means the quantity of public good is the…

Q: Pollution is a negative externality. Why is it that the social optimum in a market that generates…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: Consider the market for cars, using the following assumptions: (i) The market is perfectly…

A: Introduction Given market is perfectly competitive. demand function has given as Q = 13 - P/18 P =…

Q: Imagine that in the state of California a chemical producing firms has a marketable permit that…

A: A "carbon credit" permits the owner to emit a specific amount of carbon dioxide or other greenhouse…

Q: Private markets fail to reach a socially optimal level when positive externalities are present…

A: There are two types of externalities: positive and negative externalities.  Positive externalities…

Q: The government has recently introduced a marketable permit program for major polluters where one…

A: The Pollutant emited by the firm earlier = 400 units The permits granted to the firm for 800…

Q: Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution…

A: Given  MCA=50+3QA  MCB=20+6QB (MARGINAL BENIFIT) MB=590-3Qtot  QA and QB are the quantities of…

Q: How can a society reach a socially efficient equilibrium basing it on the Coase Theorem if a vaccine…

A: Coase theorem – the theory was developed by Ronald Coase, it states that under perfect competition…

Q: Compare the emission fee vs. the cap-and-trade system to deal with an externality, in the presence…

A: Emission fee is the tax imposed on the pollution emitted in production of goods and services. It is…

Q: Many economists would consider an efficient level of pollution control to occur where the marginal…

A: Answer: An efficient level of pollution control occurs where the marginal benefit of reducing…

Q: There are two workers. Each worker's demand for a public good is P= 20 - Q. The marginal cost of…

A: A "socially optimum solution" is what economists refer to when they talk about "the ideal allocation…

Q: different if the product is a public good instead?

A: Goods and services are excludable when it is possible to prevent someone from consuming them. Goods…

Q: in a small town, a paper mill discharges wastewater to the river, causing water pollution. suppose…

A: MD=3E MAC= 40-2E   Note:-  Since you have posted multiple subparts of a question, as per the…

Q: Two firms are ordered by the federal government to reduce their pollution levels. Firm A’s marginal…

A: NOTE:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Is zero pollution possible under a marketable permits system? Why or why not?

A: Externality refers to the situation in which the act of production or consumption affects the third…

Q: Suppose that a local airport is near a residential neighborhood. To land at this airport, an…

A: Private cost is a cost that an individual or company pays in order to use or produce goods and…

Q: Suppose electricity generates a negative externality in production If​ so, then   A. the marginal…

A: Negative externality refers to the act of spillover of costs to the third party. Marginal cost…

Q: Assume a first firework is lit. What is the benefit to your family? What is the total benefit to all…

A: (Note: Since there are multiple questions, the first three have been solved). The marginal (MB)…

Q: Suppose the equation for the demand curve in a market is P=100-1.5QD, where Qp is the quantity…

A: Given Demand equation :- P = 100 - 1.5QD Supply equation :- P = 0.5QS External cost = $8

Q: Describe a situation where at least one homeowner would be made worse off by this cleanup policy.…

A: 1. A scenario wherever a minimum of one home-owner would be created worse off by this cleanup policy…

Q: Consider a competitive industry with production valued according to a MB = 200 - Q and production…

A: MB = 200 - Q MC = 50 + 2Q MCE = 30 + 2Q

Q: Air pollution creates a negative externality—a cost suffered by a third party as a result of an…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution…

A: The Social optimum level of both the firms requires MB=MCA= MCB. It also requires estimating QA in…

Q: Suppose there are one hundred residents in a neighborhood, and each resident has an identical demand…

A: If consumption of a commodity by one individual does not reduce the amount available for others, the…

Q: If a positive externality exists in the consumption of a good, the private market equilibrium…

A: The externality creates market failure in the economy as the competitive market is failing to…

Q: using an appropriate graph, show the effects of externalities on the private and social optimum…

A: Externalities can be defined as the cost or benefit generated by a person who doesn't participate in…

Q: Two firms are ordered by the Government to reduce their pollution levels. Firm A’s marginal costs…

A: MC of firm A : MCA= 20+4QA MC of firm B : MCB = 10+8QB MB : 400-4Q   [Q=QA+QB] To obtain socially…

Q: Externalities I Perhaps ironically, air conditioners produce heat as a waste product (to say nothing…

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

Q: There are two people. Each person's demand for a public good is P = 20 - Q. The marginal cost of…

A: Public good is a common good which is enjoyed by all people in the society but by using the public…

Q: If a good imported from abroad creates significant pollution (a negative externality), then the…

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…