Table 10-1 Quantity (Units) Private Value (Dollars) Private Cost (Dollars) External Cost (Dollars) 1 28 16 4 2 26 18 4 3 24 20 4 4 22 22 4 5 20 24 4 6 18 26 4 7 16 28 4 Refer to Table 10-1. What is the equilibrium quantity of output in the market? Group of answer choices 3 units 2 units 5 units 4 units
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Table 10-1
|
Quantity (Units) |
Private Value (Dollars) |
Private Cost (Dollars) |
External Cost (Dollars) |
| 1 | 28 | 16 | 4 |
| 2 | 26 | 18 | 4 |
| 3 | 24 | 20 | 4 |
| 4 | 22 | 22 | 4 |
| 5 | 20 | 24 | 4 |
| 6 | 18 | 26 | 4 |
| 7 | 16 | 28 | 4 |
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4 units
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- Refer to the provided supply-and-demand graph. S1 and D1 represent the current market supply and demand, respectively. S2 and D2 represent the total-cost supply and total-benefits demand. The positions of the graphs indicate that there are Multiple Choice a. external benefits from producing and consuming the product. b. external benefits from producing and external costs from consuming the product. c. external costs from producing and consuming the product. d. external costs from producing and external benefits from consuming the product.Question THREE Some reasons why resources could be allocated inefficiently by the market are negative externalities and positive externalities. Explain, using graphs, what the problem is in each case, and explain possible solutions to each problem. All of these problems might be described as arising due to poorly defined property rights. Explain the relationship of property rights to these instances where the market fails to allocate resources efficiently. Explain how a corrective tax can eliminate the inefficiency caused by a negative externality. Use a graph to assist your explanation.Discuss how rationing impure public goods would limit consumption of the following (USE PROPER DIAGRAM) : i. Roads : ii. Healthcare iii. Public recreational parks
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- Suppose that you have the following demand and supply curve for sneakers: Qd = 400 – 3P Qs = 200 + 2P Solve for the equilibrium price and quantity. Calculate consumer expenditures on sneakers. Would a 5% increase in price (due to external factors) cause consumer expenditures to rise or fall?Refer to Table 2. What is the equilibrium quantity of output in the market? What is the socially-optimal quantity of output in this market? Refer to Table 2. How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome?Using examples to differentiate between positive consumption externalities and negative production externalities. Answer text Rich text editor
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