The socially efficient level of production occurs where the marginal cost curve intersects...

Q: X(p)=1,000,000-200,000p, where p is the price charged by the government for use of a bridge, per…

A: The function X(p) represents the dd function for using the bridge which is inversely related to the…

Q: Can an activity generate both positive and negative externalities at the same time? Explain your…

A: Please find the answer below.

Q: Assume that the MC of producing steel does not include the cost of the damage to the environment as…

A: In the market, it is given that the marginal cost of producing steel does not include the damage it…

Q: If the government charges an emissions tax of $f per unit, the resulting total social cost will be…

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

Q: The inverse demand curve for steel is P = 300 – Q, where price P is dollars per ton and output Q is…

A: Externality refers to the impact of production or consumption on the third party who is not involved…

Q: What is an externality?  How do they affect market efficiency?  If an externality is present,…

A: Externality is an economic concept that describes the costs or benefits that a third party bears…

Q: Imagine any number of identical boats can fish along the North Carolina coast. The value of fishing…

A: Optimal condistion,  Marginal revenue = Marginal cost

Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…

A: Negative externalities are negative side effects of economic activities that are not captured by the…

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: A firm has 20 employees, each of whom desires a more pleasant work environment. Accordingly, they…

A: Profits= Total revenue - total cost, this difference has to maximised at equilibrium. The first…

Q: You are an industry analyst that specializes in an industry where the market inverse demand is P =…

A: MPB=Marginal Private Benefit  MSB=Marginal Social Benefit MSB=MPB+MEB where MPB=marginal private…

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: There are two consumers of mosquito abatement (a public good), Dash and Lily. Dash's benefit from…

A: Pollution abatement refers to measures taken to reduce pollution or it's impact.

Q: $1,200 1,100 1,000 900 800 700 600 500 400 300 200 D 100 50 100 150 200 250 300 350 400 450 500 550…

A:

Q: Cars impose many external costs on society: carbon dioxide emissions that contribute to air…

A: Negative externality refers to adverse effect from production or consumption of a good imposed on…

Q: Consider the following model for the production of refined oil MPC = 100 + 0.7Q МЕС - 0.3Q MPB = 400…

A: The presence of externality leads to spillover costs benefits to a third party who is not directly…

Q: How can the government solve this externality problem? Explain in detail.

A: When markets are functioning well, all the prices and benefits of a transaction for a decent or…

Q: Give an ideal example of a positive (consumption) externality which leads to a market failure

A: A positive externality refers to a benefit that is extended to a third party, who did not choose to…

Q: True or false and use a graph to explain: the socially optimal level of pollution is zero.

A: By matching the marginal cost of new pollution with the marginal benefit, the amount of pollution…

Q: Which of the following would create a negative externality? A person plays loud music that can be…

A: An externality is a cost or benefit developed by the producer and incurred or received by the third…

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: Consider the provision of a playground. The marginal benefit for consumer 1 is given by MB = 30 –…

A: here we calculate the socially optimal level of the playground and choose the correct option so the…

Q: The table below shows cost data for producing different amounts of oil. The market for oil produces…

A: Answer to the question is as follows:

Q: Imagine any number of identical boats can fish along the North Carolina coast. The value of fishing…

A: The optimal value will occur when we equate marginal revenue to the marginal cost.  MV =50 - 5 N  MC…

Q: Which of the following is NOT the way to solve the problem of negative externalities? a. Transfer…

A: In economics, the term externality is used to define the impact of one's action on any other…

Q: When pollution (a negative externality) is created by firms, which of the following is NOT a valid…

A: Negative externalities arise when a detrimental impact on a third party is triggered by the use or…

Q: At the socially efficient level of emission, net gain to you is

A: Given marginal damage function = MD =5 E           Marginal abatement cost = MAC =600 -10E

Q: Ben produces chemical compounds that sell for $500 in the market. This production process generates…

A: The given information is:- Price of chemical compounds in market = $500 Price for professional waste…

Q: If the market allocation is efficient, then: A.The marginal private cost equals the marginal social…

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

Q: Consider the provision of a playground. The marginal benefit for consumer 1 is given by MB = 30 –…

A: Given: The marginal benefit of consumer 1 is MB = 30 - 2Q The marginal benefit of consumer 2 is MB =…

Q: The social cost of carbon is measured as the welfare gain associated with the total tons of carbon…

A: Social cost: It means the total cost to society.

Q: Examples of transaction costs include (check all that apply): O A. the cost of the externality. B.…

A: Transaction costs are the costs associated with purchasing or selling a product or service.

Q: h creates no externalities is _____________________ by a free competitive market.     A.…

A: Private good is a product or service being produced by a business being privately owned and…

Q: Explain the negative externalities by clarifying the drawing

A: A negative externality is a cost forced on an outsider from delivering or burning-through a decent.…

Q: millions of barrels of oil and P is the price per barrel of oil. The marginal private cost of…

A: Marginal private cost (MPC) is the change in the producer's total cost brought about by the…

Q: If it costs $6 to purchase & plant a tree, what is the socially optimal number of trees to be…

A: The socially optimal number of trees is where marginal cost equals marginal benefit.

Q: There are two consumers of mosquito abatement (a public good), Dave and Lilly. Dave's benefit from…

A: a) The marginal benefit of Dave, MBD = 100- Q The marginal benefit of Lily, MBL = 60- Q The total…

Q: Why is it socially efficient to set marginal benefits equal to marginal costs rather  than abating…

A:

Q: If the production of oranges reduces global warming, then the equilibrium quantity of oranges will…

A: Equilibrium quantity refers to the quantity that exhibits the level where demand and supply are…

Q: Are socially efficient level of emission and market efficiency is equal? Explain with help of…

A: Market outcomes are characterized by optimizing the level of output taking into consideration the…

Q: Suppose the equation for the demand curve in a market is P=100 – 20. Also, suppose the equation tor…

A: When there is a negative externality, social cost is the sum of private cost and external cost.

Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…

A: The externalities cause the market failure. Thus government imposes taxes to correct negative…

Q: When there is a market failure, the market outcome is not socially optimal. True O False

A: when there is a market failure the market outcome is not socially optimal - TRUE

Q: Price S (full social cost) Externality Cost Sp (private cost) E G D Q, Q2 Q, Quantity

A: The equilibrium point is the one where the marginal benefit is equal to the marginal cost.

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…