4 The social marginal benefits and social marginal costs of using grazing land are shown to the right.af residents are permited unlimited access to the use of the grazing land at a zero price, what is theprivate marginal cost of grazing? Draw the MC curve in the diagram. What level of grazing will occur ithere is unvestricted access to the land? What is the officient level of grazing?Use the 3-point curve drawing tool to plot the marginal private cost curve. Label this curve "MCUse the point drawing tool to plot the level of grazing if there is unrestricted access to the land. Label thispoint GraningUse the point drawing tool to plot the efficient level of grazing Label this point "GrazingentCarefully follow the instructions above and only draw the required objectsDollarsMBSNumber of Animals Grazing on Fixed Quantity of Land

Answer to the question is as follows:1

The social marginal benefits and social marginal costs of using grazing and are shown to the right pered united access to the use of the grazing land at a zero price, what is the ginal cost of grasing? Draw the MC, ourve in the diagram What level of grazing will occur i is the efficient level of gracing? Use the 3 point une drawing tool to plot the marginal private col curve Label this ourve MC Use the point drawing tool to plot the level of grazing if there is unrestricted access to the land. Label this Use the point drawing tool to plot the efficient level of graning Label this point "Grazing Carely follow the instructions above and only draw the required objects MB Number of Animais Gracing on Fixed Quantity of Land

The social marginal benefits and social marginal costs of using grazing and are shown to the right pered united access to the use of the grazing land at a zero price, what is the ginal cost of grasing? Draw the MC, ourve in the diagram What level of grazing will occur i is the efficient level of gracing? Use the 3 point une drawing tool to plot the marginal private col curve Label this ourve MC Use the point drawing tool to plot the level of grazing if there is unrestricted access to the land. Label this Use the point drawing tool to plot the efficient level of graning Label this point "Grazing Carely follow the instructions above and only draw the required objects MB Number of Animais Gracing on Fixed Quantity of Land

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...

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Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?
Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel efficient cars are the same as the marginal social benefits. Discuss one wags.r that the government cans ï¬‚y to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is flying to affect production through costs, net benefits.
Aiticle Link: https://bit.lv/3fbNtrFe The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Price of high tmiiees vekides Secial Value Babetty high emistions vehiles What is the private value of the last unit traded (or the willingness to pay of the marginal buyer) in the market? P1 O P2 O P3 P4
Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward, The production of the 1,000 gallon of gasoline entails the following a private cost of $3.10 a social cost of $3-55 a value to consumers of 83-70 Refer to Seenario 10-1. From the given information, it is apparent that O a the production of gasoline involves a negative xternality, so the market will produce a smaler quantity of gasoline than is socially desirable. O b. the production of gasoline involves a positive esternality, so the market will produce a smaller quantity of gasoline than is socially desirable O c he production of gasoline invalves a posve externality, so the market will produce a larger quantity of gasoline than is socially desiratie. Od the production of gasatine imolves a negative extemality, se the market will produce a larger quantity of ganolne than is socially desirable.
The table below shows cost data for producing different amounts of oil. The market for oil produces negative externalities in the form of pollution and environmental damage. ITTT Price Demand Private Supply Private+Social Supply 4 55 40 10 12 50 50 20 20 45 60 30 28 40 70 40 36 35 80 50 How many barrels of oil will be produced by the free market? What is the socially optimal output of oil?
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ASAP plz Why don't people/stores make different decisions? Cost is a factor: a case of foam take-out containers costs $25, compared with $58 for paper and recyclable-plastics. How does this affect the firm's profit? Are consumers willing to pay more? Negative externality Consider the demand and supply given above. Suppose there is an external cost given by MEC=5Q. Find social equilibrium price and quantity. Draw a graph and label both private and social equilibrium.
Ellen and Jo have identical marginal private cost curves and demand curves and use the same amount of land to graze their ostriches. They both have access to a common grazing area, which must only be maintained on a volunteer basis. If they had to maintain the land, it would cost each person an additional $200.$200. The maximum sustainable quantity of grazing animals on the land is 14.14. The graph depicts the marginal private cost curves and the farmers' individual demand curves, which are identical for each farmer. Cost ($)Quantity of Animals024681012141618200100200300400500600700800Individual farmer's demand individual farmer's supply Assume that Ellen and Jo do not contribute to maintaining the land. How many total ostriches will both farmers graze on the common? a number of ostriches: Is this sustainable? yes no Suppose that Ellen and Jo form a common's association with a membership fee that goes to maintaining the land. This fee is equal to the…
The Graph below illustrates the Demand and Supply curves for Higher Education by College students, per year in the USA. Use it for the next 5 Questions--Dp is the Private Demand curve based on the Marginal Private Benefit (MPB), Ds is the Social Demand curve based on optimal Marginal Social Benefit (MSB), and S is the Supply curve. Price and cost (Dollars per College Student Per year) 30,000 25,000 15,000 10,000 0 S 20 Dp -LAP Dypical Ds MSB joptimaly 40 60 Quantity (Millions of College Students per year) Why is the Ds curve different from the Dp curve in this market?
Suppose Scott and Bob live on the same street. in the winter, both of them like their street plowed. Bob's demand is given by 0 = 40 - P, and Scott's demand is gren by 0 = 30 - 2P. Suppose the marginal cost of plowing the snow is constant at $35 (a) What is the social marginal benefit curve? (b) What is the socially efficient amount of plowing? (c) What would be the socially efficient amount of plowing if the marginal cost of plowing were $5?