Study Guide for Microeconomics
Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 18, Problem 2E
To determine

The copyrighting of computer software.

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if the marginal social benefit exceeds the marginal private benefit, the eficiency of the market can be improved with a
Suppose that you are examining the cigarette market in the US. The supply curve slopes upward, while the demand curve slopes downward. The market equilibrium quantity is 600 packs of cigarettes, while the socially optimal quantity is 300 packs of cigarettes. The 600th pack costs 13 dollars to produce for the producers, and the social cost associated with it is 16 dollars. If the government decides to implement a corrective tax policy to address the market failure in this market, the per unit tax is (please input a number without a dollar sign): A/ The total tax revenue is (please input a number without a dollar sign):
Consider the following supply and demand curves for buying shrimps. Shrimps produce positive externalities; in addition to the benefit they generate for those who consume them, they filter impurities from the water they grow in, which benefits everyone who uses the water. This is represented in the following graph, which shows a higher marginal social benefit than marginal private benefit.   What is the socially efficient number of oysters to be sold?
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