Business
Engineering
Math
Science
Social Science
If the private cost and social cost columns were reversed in exercise 3, what would be the result? Would too much or too little of the good be produced? How would the market failure be resolved, by a tax or by a subsidy?
Economics:
Economics:
If the private cost and social cost columns were reversed in exercise 3, what would be the result? Would too much or too little of the good be produced? How would the market failure be resolved, by a tax or by a subsidy?
To explain:
The result of reversing the private cost and social cost, the level of output and resolution for market failure is to be determine.
Explanation of Solution
| Quantity | Social Cost | Private Cost | Benefit | Marginal Benefits (MB) | External Cost |
| 1 | 2 | 4 | 12 | 12 | -2 |
| 2 | 6 | 10 | 22 | 10 | -4 |
| 3 | 12 | 18 |
Chapter 27 Solutions
Additional Business Textbook Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Foundations of Business (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Corporate Financial Accounting
Management, Loose-Leaf Version
Fundamentals of Financial Management (MindTap Course List)
Accounting Information Systems
Financial And Managerial Accounting
Financial & Managerial Accounting
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Contemporary Marketing
Accounting Information Systems
Essentials of Business Communication (MindTap Course List)
College Accounting, Chapters 1-27
Financial Accounting
MKTG 12:STUDENT ED.-TEXT
Statistics for Business & Economics, Revised (MindTap Course List)
Exploring Economics
Managerial Accounting: The Cornerstone of Business Decision-Making
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
Financial Accounting
Financial & Managerial Accounting
Accounting (Text Only)
College Accounting (Book Only): A Career Approach
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Pkg Acc Infor Systems MS VISIO CD
College Accounting (Book Only): A Career Approach
Macroeconomics
Microeconomics
Economics For Today
Economics (MindTap Course List)
Purchasing and Supply Chain Management
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Cornerstones of Cost Management (Cornerstones Series)
Survey of Accounting (Accounting I)
Corporate Financial Accounting
