What price and quantity will the firm in the diagram above produce? What’s the socially-optimal price and quantity? In the absence of government intervention, will this firm produce too much or too little?

Q: The consumer surplus from a good is measured by the A) area of the triangle above the market price…

A: We know that the marginal benefit is the additional benefit received by consuming one additional…

Q: Explain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: What is the principal question Coase posits when it comes to negative externalities? Who should be…

A: The basic discovery of the Coase Theorem is that externalities are reciprocal. A polluter, in…

Q: Production in the private market is inefficient. Why? What is the condition for efficiency in the…

A: First we need to know what is Production inefficient. If a company does not produce at the lowest…

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: How externalities and their impact the economy? explain the negative and the positive externalities…

A: The market failure is the inefficiency caused in the market when the resources are not allocated…

Q: Suppose there are two residents in a neighborhood, and you know both of their demand curves for a…

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Q: The chart above shows the market for polio vaccine in Pakistan. This vaccine provides external…

A: a. If there is a competitive market and no government intervention, then the amount will be…

Q: How would an economist answer the question: "What is the socially best amount of pollution control?"…

A: The socially best amount of pollution control will be at the point or amount where the net benefits…

Q: What are the variables for sustainability for hunger?

A: sustainability development refers to the idea that human beings society must live and meet their…

Q: When people pay less for something than it is worth to them, they receive what is called a(n)…

A: Total surplus refers to the total amount of well being experience by all the participants in the…

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: Why is the law of demand and the law of supply a useful economic model

A: The law of both demand and supply shows the interaction between buyers and sellers of the good or…

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: Discuss the concept of homoeconomus with adequate examples. How does it help create an equilibrium…

A: The subject that includes the discussion about the allocation of scarce resources among all the…

Q: In which ways can a government make sure that the social cost is reflected in the firm’s supply? How…

A: Externalities is the situation where the action of one agent has some impact whether positive or…

Q: An externality arises when one economic agent's actions affect the welfare of others in ways that…

A: The indirect benefit or cost being caused to third parties mainly arising due to the effect of…

Q: Suppose the Environmental Protection Agency (EPA) wants to mandate that all methane emissions must…

A: Sustainable development is the development of present generation without sacrifing the benefits or…

Q: Refer to Table 2. What is the equilibrium quantity of output in the market? What is the…

A: Equilibrium is the balance between the demand of the commodity and the supply of the commodity in…

Q: An externality arises when one economic agent's actions affect the welfare of others in ways that…

A: There are two externalities that can be considered here, either it can be positive externalities or…

Q: The production possibilities curve shows the tradeoff between housing and all other goods. a. If the…

A: PPC stands production possibilities curve which describe the possibility of production with given…

Q: What is the total benefit at the privately efficient equilibrium? What is the total cost at the…

A: Solution:      A negative externality/extemal cost are a type of spillover which imposes a cost on…

Q: What is the efficient outcome in this market? Equivalently, which types of bikes should change their…

A: Individual preferences are typically assumed in welfare economics, and efforts are made to improve…

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

A: When the manufacturing or consumption of a product results in a cost being incurred by a third…

Q: Explain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality…

A: A positive externality may be a benefit that's enjoyed by a third-party as a results of an economic…

Q: Adam Smith’s theory of the invisible hand is often used to justify a hands-off approach to market…

A: The automatic equibrialization of demand and supply in a free market situation by any unobservable…

Q: What is the socially optimal price for this market? [Select] What is the socially optimal quantity…

A: Optimal outcome is at intersection of Social demand and MC curves, while equilibrium is at…

Q: Which of the following is NOT true about the social marginal cost curve? O It represents the…

A: Marginal social cost refers to the cost to society in production or consumption of one extra unit of…

Q: a) State and explain Arrow’s Impossibility Theorem and its implications for social choice.

A:

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: 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: Which of the following is the best example of a public good? Group of answer choices AT&T mobile…

A: A Public good refers to a good that is both non-excludable and non-rivalrous. For such goods,…

Q: What are three reasons that a government might want to intervene in markets?

A: Government interference is government legislative action that aims to alter the decisions taken…

Q: One approach to the problem of pollution control in a market economy is to sell pollution credits,…

A: Answer a) Pollution Credits are a way of dealing with pollution in an open market.  a system that…

Q: Considering the Human Right to Adequate Food, should “healthy” food be made available to all, free…

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

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Q: Two reasons for a government to intervene in a market are to

A: In a free market, the forces of market demand and supply determine the equilibrium level of price…

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: What are the four major sources of market failure? Explain briefly why each prevents the competitive…

A: Market failure is defined as imperfections that occur in the market between buyers and sellers that…

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

A: With the positive consumption externality, we have SMB > PMB.

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: In a market economy, what is the central coordinating mechanism? How does a market economy solve the…

A: Hey, thank you for the questions but according to our policy we answer only one question per…

Q: Define social benefit.

A: In economics, there is a concept of social benefit and private benefit. Private benefit is the…

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…

Q: To what extent are free markets morally justified? In your answer, you may want to be clear about…

A: The markets are a distributive mechanism which would result in the allocation of the goods and…

Q: Explain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality…

A: 1.A farmer who uses pesticides to produce vegetables This would be classified as negative…