Some economists argue that early child care generates an external benefit to society. Consider the following demand and supply graph for early childhood education. Demand: P= 1800-5Q Supply: P= 1000+5Q MEB= 400 1) What is the out of pocket price that consumers should pay in the socially optimal market?

Q: Graphically represent the following: A corrective tax that achieves the socially optimal output…

A: In the case of negative externalities, the social cost of an activity is greater than the private…

Q: Provide an example of a positive and a negative externality. Explain your examples.  Are there…

A: Provide an example of a positive and a negative externality. Positive externality :-  Development…

Q: If producing a good creates a negative externality, we will have a social cost curve that is…

A: In a market, when there is a negative externality associated with the production of a specfiic good,…

Q: Give solutions to the externality problem.

A: The situation that depicts either a benefit or a cost being caused by a producer not received or…

Q: Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean…

A: Since the question you have posted has multiple parts, we will answer the first three parts for you.…

Q: In a market with external costs, the market price is:     regulated by the government.…

A: In economics, the term external cost is associated with the third party; that is, individuals other…

Q: Use the shaded triangle to show the deadweight loss associated with the external benefit depicted on…

A: Externalities refer to the cost or benefit of an economic transaction incurred on a third party who…

Q: a) market-based policy

A: The economic policy of France 2017 focused on more inclusive growth by improving the social and…

Q: The market for used phones is perfectly competitive without externalities. Market demand is Q=378-2P…

A: Given:  Marked Demand:Q=378-2PMarket Supply: P=2Q+5-2Q=5-P2Q=5+PQ=52+P2Q=2.5 +0.5PNow, Equilibrium…

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: In the presence of positive externalities, producers may need a subsidy in order to produce the…

A: "Positive externalities occurs if production or consumption of a commodity benefits the third party…

Q: An externality is Select one: a. the uncompensated impact of one person's actions on the well-being…

A: There is cost and benefit associated with every activity.

Q: Which of the following is a positive externality?

A: Positive externality is the externality which impacts the society positively.  It occurs when the…

Q: Thich of the following is an example of a negative externality? the benefit you receive when your…

A: Externality refers to cost or benefit that tends to affect people who is not the part of production…

Q: The figure below shows the market for driver education programs. The market demand curve for driver…

A: The positive externality states that the production or consumption of a particular goods or services…

Q: When a negative externality exists in a market, the marginal social cost curve is __________________…

A: Negative externalities refer to the impact on the third party in a negative sense. An externality is…

Q: Draw a supply curve and describe the external factors that determine supply.

A: supply is defined as the quantity of goods that the producers decide to sell in the market at any…

Q: Studies have shown that people have a high value for beautiful architecture,  What are some…

A: Introduction:   In an economy, a few products are overproduced while some may be underproduced that…

Q: |Use the graph below to answer the following: 20 15 10 10 15 20 Quantity (units) Consider a marginal…

A: When there is negative externality, it creates an external cost. This leads to marginal damage to…

Q: A set of perfectly competitive companies produce shoes. 1 pound of water pollution (WP) is released…

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

Q: What would be an example of a negative externality? What would be an example of a positive…

A: Negative externality said when is a transaction between the two parties but its effects on the third…

Q: Provide the correct answer please ... If there are no externalities a competitive market achieves…

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

Q: . Externalities. Answer true or false, and give a brief explanation (one sentence only). a.…

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

Q: Explain in words and show in your graph the "spillover benefit" that occurs when an individual…

A: 2. Positive externality or spillover benefit is an advantage that is derived by a third party when…

Q: The market for good Q is perfectly competitive. However, it features negative externalities. In the…

A: The market for good Q is perfectly competitive. This market has negative externalities.  Perfect…

Q: A Pigovian subsidy... O raises the cost of a good to consumers. O increases production costs. O…

A: When there is positive externality, market output is lower than socially efficient output. To…

Q: Which of the following is a good example of a negative externality? A) Tom drives home drunk instead…

A: A negative externality is an expense that is endured by a third party due to financial…

Q: Why is a price change NOT an externality? Select one: a. A price change affects bystanders, not…

A: Most of the externalities comes under the category of so-called technical externalities; that's ,…

Q: Which of the following is an example of an activity generating a positive externality?

A: Positive externality means the production or consumption of goods or services create a positive…

Q: A neighborhood homeowners' association charges a fee when residents make loud noise from 9 p.m.…

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

Q: Explain the difference between a positive externality and a negative externality. Can both types of…

A: A market failure occurs when the market ignores the true (social) costs and benefits of economic…

Q: How large would a subsidy need to be in this market to move the market from the equilibrium level of…

A: The equilibrium level exists at a level where the private value and private cost is equal.…

Q: The efficient level of paper production is more likely to occur A) in a market with positive…

A: The consumer and producer surplus is maximized when there is no externality in the market.

Q: Based on the graph: a. In this market, how much is the external cost from the production of each…

A: Given;

Q: An externality arises vwhen a firm or person engages in an activity that affects the wellbeing of a…

A: An externality arises when a firm or person engages in an activity that affects the well-being of a…

Q: Attempts Keep the Highest /3 7. Correcting for negative externalities - Taxes versus tradable…

A: A negative externality is an expense that is endured by an outsider as an outcome of a financial…

Q: Suppose the production of widgets causes a negative externality of $12 per unit. The current market…

A: A tax is a unilateral payment that the people pays towards the government for various purposes such…

Q: When a quota is used with "cap and trade" to control an externality, the government must determine…

A: Cap and trade is a government regulatory program which is used to cap or limit the level of emission…

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: 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: Which of the following instruments is government most likely to apply when confronted with a…

A: Positive externality occurs when production or consumption results in external benefits on third…

Q: Use the diagram below to answer the next three questions.    What price and quantity will the firm…

A: The concept of externality is very important as it covers the widely required concept of…

Q: The production of fabric generates toxic effluents related to the dyes used. This is typically…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three subparts for you.…

Q: Use appropriate figures to show the deadweight losses associated with a) positive externalities b)…

A: Positive externality occurs when the third party gains from the production. The third parties who…

Q: Some economists claim that early child care generates an external benefit to society. Use the below…

A: The externality is said to be created when an individual or a firm produces or consumes a good that…