The following graph (see link below) represents the market for high-emission cars. Answer the following questions assuming that the externality is not internalised. - What is the social value of the last unit traded on the market? - What is the social cost of the last unit traded on the market? - Which quantity is socially optimal (what is the effecient quantity)? - What is the deadweight loss generated by the externality

Q: Consider Good A.  There are NO externalities associated with Good A.   a.)  Draw a ( general- you…

A: The tax refers to the mandatory charge to be paid by the individuals and firms to the government. It…

Q: How do you calculate the dollar value of the net gain to society from correcting the externality

A: The dollar value of net gain to society from correcting the externality can be calculated as the…

Q: Before you answer this question, you may find it easier if you sketch a graph of a market with a…

A: Since you have asked a question with multiple parts, we have answered the first three parts for you.…

Q: How do property rights affect externalities and market failure? Do goods and services by definition…

A: Answer-

Q: Suppose the following data represent the market demand for college education:          (in…

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

Q: Refer to the following table. The externality created by the production of refrigerators was $100.…

A: An external cost refers to the cost that arises to a third party as a result of economic activity or…

Q: How does an externality indicate market failure?

A:

Q: Which of the following illustrates the concept of externalaties?       A. A hurricane destroys a…

A: An externality is the benefit or costs associated with an activity that is born by the third party…

Q: Bring an example of a positive externality and an example of a negative externality (other than…

A: Positive externality implies benefit to the party not involved in a transaction while negative…

Q: The graph illustrates the unregulated market for uranium. The mines dump their waste in a river that…

A: Marginal external cost (MEC) is the adjustment of the cost to parties other than the maker or…

Q: Explain how a tax or subsidy might be used to “correct” for the inefficiency of a market equilibrium…

A: Some externalities are bad; for instance, if a company chooses to raise profits and minimise costs…

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: Briefly explain why a positive externality creates deadweight loss. You can use a graph to support…

A: Positive externalities are when an economic activity or transaction bestows benefits on parties that…

Q: Briefly explain in (1-2 sentences) why the existence of negative externality will result in…

A: Externality - Externality is nothing but the external effect (positive or negative) on another…

Q: In the past, some counties and countries have imposed taxes on sugar, saturated fats, and food made…

A: As the milk chocolates includes huge sugar content which can lead to some health related issues. And…

Q: The following graph provides a stylised representation of the effects of the policy proposed by the…

A: An externality is defined as the action by one party which impacts a third party either positively…

Q: Use the graph to answer the question that follows. Assume that the market shown is perfectly…

A: Externalities are the spillover effect of an economic activities of a person which have an impact on…

Q: Briefly explain how research into new technologies gives rise to a positive externality.

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The following graph shows the marginal social cost (MSC), the marginal private cost (MPC), and the…

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

Q: The graph illustrates the unregulated market for pulp and paper. The mills dump their waste in a…

A: Marginal Social Costs:- The overall price society pays for the creation of an additional unit or for…

Q: The supply and demand conditions facing a firm that makes widgets and generates a negative…

A: As the market creates negative externality, without government intervention the market equilibrium…

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: An economist gives the following advice to a museum director: "You should introduce "peak pricing".…

A: Rivalry and excludability are the characteristics of the good which is used to differentiate a…

Q: The following graph (see link below) represents the market for high-emission cars. Answer the…

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

Q: Explain 'negative externalities,' defined in class as 'hidden costs' making the difference between…

A: ▪︎Negetive Externalities:- Negative externalities happen when the item and additionally utilization…

Q: The following graph represents the market for high-emissions cars. Answer this question assuming…

A: Efficient outcome occurs at intersection of Social value and supply curves. The resulting deadweight…

Q: The graph shows the marginal private benefit from a veterinary degree and the marginal cost of…

A: Marginal social benefit is the adjustment of benefits related with the utilization of an extra unit…

Q: Which of the following statements is true?   a. Competitive markets result in the socially…

A: Effluent Tax is that charge which is paid due to discharging waste to the environment and is imposed…

Q: Question 3 Briefly explain why economists prefer to levy taxes on goods that generate negative…

A: Concept: A negative externality refers to when the production has an adverse effect on society. This…

Q: Explain why consuming alcoholic beverages may have a negative externality. What policy can the…

A: The measure that depicts the benefit or cost being caused by a producer that is neither received nor…

Q: Illustrate and briefly explain the following scenarios that exhibit externalities in the market.…

A: The markets are the place where the meeting and interactions of the buyers and sellers of various…

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: Do you think that there would be external effects associated with Water from a uranium mine leaking…

A: Water from a uranium mine leaking into Kakadu National Park is an example of external effect. An…

Q: What is an externality? Provide two examples each of positive and negative externalities

A: Externality refers to the cost which is incurred or benefit which is received by third party. Third…

Q: A. Figure 10-8 (above)- For the described positive externality, what is the market quantity without…

A: Positive externality refers to positive spillover effects on the third party or the society.

Q: Explain why environmental pollution is regarded as a source of market failure. Briefly describe two…

A: Externality of Pollution An externality is a cost or benefit that someone gets who is not part of…

Q: The graph shows the marginal private benefit from a dentistry degree and the marginal cost of…

A: externality is defined as the consumption or production done by any party, which effects the third…

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

A: Given;

Q: Briefly discuss the advantage of quota vs. tax to limit externalities from consuming sugary…

A: A basic method for nations to produce public revenues that enable them to support investments in…

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: Grater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on…

A: Demand Curve = Social value curve Supply curve = Private cost curve Social Cost curve = Private cost…

Q: Consider a club promoter who wants to build a night club right next to your apartment building. You…

A: The externality as defined in the question as follows- The effect of market exchange on a third…

Q: What is an externality? Please give an example of the negative externality. For the flu shot, how…

A: An externality is a concept used in economics to describe the costs or benefits incurred by a third…

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.