A negative externality results when a 3rd party is negatively impacted by a transaction they were not involved in. In these situations, the than the marginal private cost. On the other hand, when a 3rd party is is higher positively impacted through a positive externality, are higher than Options: marginal social cost marginal private cost marginal private benefits marginal social benefits
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A: Marginal social cost(MSC) is defined as cost paid by the producer along with the external cost.
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- A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm ZER F11 F12 F6 F7 F8 F9 F10 prt sA customer has purchased one pack of 100 pairs of disposable face masks. The price of the second pack is $45, and the burer estitnated its net benefit from buying this second pack to exceed $50 What should the buyer do? Select one O a The buyer should not buy the second pack as buying the second packiwitl increase total benetts by less than total costs b. The buyer should not buy the second pack as buying the second pack will increase total benefits by more than total costs OC The buyer should buy the second pack because the marginal beneft of the second packit so igh that ts marginat cost does not mater umy more d. The buyer should buy the second pack because the marginal benefit of the second pack exceeds the marginal costcap-and-trade and windfall profitsA city called Seoul is suffering from high concentrations of mercury in the air, caused by burningcoal in power plants. There are two of these plants close to the city. The city’s mayor wants touse cap-and-trade to reduce emissions to a reportedly “safe” level of 60 tons. The two firms havethe following marginal benefits of emissions: MB1 = 100 – 2e1, MB2 = 25 – 0.5e2.a. How much mercury will each firm emit? What allowance price will prevail in themarket?Firm 2 hires a smart lobbyist who convinces the government that its profits are relatively low andthat it therefore deserves a generous allowance allocation. The government agrees and allocatesa1 = 20 allowances to firm 1 (for free) and a2 = 40 allowances to firm 2 (for free).b. What are the firms’ profits? Do any of the firms earn windfall profits? [Hint: compareprofits with and without regulation.] Windfall profits have been sharply criticized by consumer advocacy groups and politicians.c. What can…
- An increase in globalization has lead to an increase in pollution, and this is a problem because pollution is seen to be the classic example of a This is a that individuals impose on others but do not pay for. O negative externality, cost O possitive externality, benefit O negative externality, benefit O possitive externality, costWHY SHOULD OTHER PECPLE BENEFIT FROM MY HARD WORK? 1994 Wateron De tyh e d Figure 1 Figure 1 shows how Calvin carefully avoids creating a positive externality (think of this as the equivalent of a factory applying a filter to eliminate any polluting emissions). Assume that this way of snow shovelling does not create any additional costs for Calvin (no extra effort and he has no plans to return home any time soon). b) As creating positive externalities leads to a social problem (see question a), and Calvin's way of snow shovelling avoids creating positive externalities, does Calvin's behaviour imply an efficiency improvement from a social point of view? Explain.What is an externality?
- 1. Write situations that can present the different barriers at communicationand ways to avoid these.BarriersExample SituationPossible Strategy that canbe used to AvoidMisunderstanding1. Physical Barier2. Semantic Barrier3. PsychologicalBarrier4. Mechanical Barrier5. Cultural Bonet II Identity the nonverbal cues present in eoch situation and underline thewords that links to it. 1. She always wears her bracelet when she joins any contest._2. The reason of avoiding her because of ourmisunderstanding3. Brion likes to pinch my cheeks all the time.-4. The aroma of his cottee wakes her up in the morning_5. Her dance moves really prove that she's a dancer6. Those students who are wearing long sleeves and grayskirt are Tourism students.7. She received a lot of medals in her graduation8. Her parents told him to wait Celine reaches 18 years old,so that he can finally court her.9. Jenna and Kaye can't be separated in their classroom10. His smiles can brighten up my day!T/F wieth explanationA law is passed providing for compulsory vaccination and subjects a person toimprisonment for refusing to submit vaccination, except when it is apparent or it canbe shown that the person is not fit for vaccination because of his physical condition. Isthe law valid?
- 53. The Indiana University basketball team trails by twopoints with eight seconds to go and has the ball. Shouldit attempt a two-point shot or a three-point shot?Assume that the Indiana shot will end the game and thatno foul will occur on the shot. Assume that a three-pointshot has a 30% chance of success, and atwo-point shot has a 55% chance of success. Finally,assume that Indiana has a 55% chance of winning inovertime.Completed 17 out of 20 estion 14 of 20 > A network externality is an external cost or benefit generated from the O virtuous cycle. O production of a network good. consumption of a network good. O network effect. LAPTOP LOGIN cen PASSWORD: Browarg USERNAME: studentConsider a factory, located in the middle of nowhere, producing a nasty smell. As long as no one is around toexperience the unpleasant odor, are any externalities produced? Suppose that there was family next door to the smelly factory. Do we now have an externalities problem?Suppose that the family clearly possesses the right to a pleasant-smelling environment. Does this mean thatthe factory will be required to stop producing the bad smell? What can be a private solution to this problem?