2 Question 5The Constitution says that Congress provides "advice and consent" on the acceptance of electoralvotes on January 6 after a presidential election.O TrueFalseDQuestion 6Public goods are both non-rivalous and non-exclusive.TrueO FalseQuestion 7Markets provide too large a quantity of public goods if left alone because of free riders.O TrueFalse

2nd questions is related with public goods. Goods are produced in the market determined by the…

Answered: Public goods are both non-rivalous and…

Business

Economics

Public goods are both non-rivalous and non-exclusive. O True O False

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 1.2P

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Please help and explainAssume a water market, and let MB denote the marginal benefit from spraying fertilizers while MC denotes the marginal cost. That is, MB = 10 - q, and MC = 3/2 q where q denotes total pollution generated.The state government would like to define the rights to the underground water and set an institution that will lead to pollution regulation. 1. Use a figure to depict the competitive outcome. Derive the competitive equilibrium outcome. What is the net benefit, net cost, and the equilibrium amount of pollution generated, i.e., q?2. Use a second figure to explain how well-defined property rights can create a market for the pollution and internalize fertilizer's social cost. Separate the analysis to two different institutions and assume surpluses are distributed evenly between the polluter and pollutee:1. The cotton producer, who is also the polluter, has the right to pollute and the ownership of the underground water.2. Assume the dairy farmer, who is the pollutee,…
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Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.
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I notice that the last section which I'm including isn't explained. ------ Regulation Versus Tradable Permits Determine the total cost of eliminating six units of pollution using both methods, and enter the amounts in the following table. (Hint: You might need to get information from previous tasks to complete this table.) Proposed Method Total Cost of Eliminating Six Units of Pollution (Dollars) Regulation ?? Tradable Permits ?? In this case, you can conclude that eliminating pollution is ___ costly to society when the government distributes tradable permits than when it regulates each firm to eliminate a certain amount of pollution. ------ Can you please explain this part of the question? Much appreciated.