Help me please A market is said to be purely competitive if there is alarge number of (gap), the output of all firms are(gap) and there is (gap)2. Spill-over cost, also known as (gap) is a termused to describe some loss or damage that a (gap)causes a third party3. (gap) also known as positive externalities occurswhen the consumption or (gap) causes a benefit toa third party4. Large number of sellers and buyers-plurality-consumer welfare-homogeneity-free entry and exit-allocation of resources5. Outputs are homogenous-consumer welfare-spill-over benefits-plurality-mobility of resources-identical6. No artificial obstacles or barriers-allocation of resources-free entry and exit-plurality-identical-spill-over benefits7. Modified by fiscal or governmental action-market failure-allocation of resources-artificial obstacles-unbridled competition-spill-over cost8. Producers tend to ignore cost that they can a-inefficient allocation of resources

Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Answered: A market is said to be purely…

A market is said to be purely competitive if there is a large number of (gap), the output of all firms are (gap) and there is (gap)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose that the full employment level of nominal GDP rises in one year from $16.8 to $18.0…

A: Gross domestic product (GDP) is estimated using the most current market prices to determine nominal…

Q: Frigid Florida Winter is Bad News for Tomato Lovers An unusually cold January in Florida destroyed…

A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…

Q: Draw a demand and supply graph for each of the following questions. For each question, start by…

A: Equilibrium is the state where market supply and demand balance one another, and subsequently,…

Q: diminishing marginal benefit rising marginal cost

Q: 10. Which of the following is usually considered a cost of GDP growth? A. Higher life expectancy B.…

A: GDP refers to the total amount of goods and services produced in an economy in a year. GDP is…

Q: there are only 250 available seats in the hall where a very popular play is performed. The…

A: In the free market, equilibrium price and quantity is determined by the forces of demand and supply…

Q: Kooche Company plans to invest $1,000,000 in projects next year. $700,000 will be provided through…

A: We use the formula for the Weighted Average Cost of Capital (WACC): WACC = (Weightage of equity*cost…

Q: If you read in the newspaper that the United States’ 2015 real GDP declined while nominal GDP for…

A: The entire amount of goods and services generated in an economy each year is referred to as GDP. To…

Q: C. Carol consumes cheese, x, and cocoa, y. Cocoa is sold in an unusual way: a units of cocoa will…

A: This is an example of the perfect substitute. Corner solution is likely to occur in such situation.

Q: A. Suppose that the economy is characterized by the following behavioral equations: • • C = 160+ 0.6…

A: Government spending is the sum of money used by the government to finance the purchase of products…

Q: Jerry James might consider buying a nominal Treasury Bond rather than Treasury Inflation Protected…

A: Treasury Inflation-Protected Securities (TIPS) are one type of debt securities offered by the U.S.…

Q: Nobody likes pollution (or crime, or accidents)! But economists, as they so often do, bring a…

A: An indirect cost or benefit that a non-participating third party experiences as a result of another…

Q: A man borrowed P2,000 from a bank and promised to pay the amount for one year. He received only the…

A: Here it is given that- Amount borrowed from bank =P 2,000Amount recieved after the bank collected an…

Q: A rise in the number of recording studios increases the quantity of CDs supplied by 75 a day at each…

Q: Four Seasons Brewery has a variety of costs. Label which cost is EXPLICIT and which cost is…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Why are goods and services counted in GDP at market value

A: The gross domestic product (GDP) is the sum of the market values of all finished goods and services…

Q: The market of candy is described by Ys = -8 +2P Yd=32-0.5P Which results in the market-optimal price…

A: In the free market, equilibrium price and quantity is determined by the forces of demand and supply.…

Q: ou need P 4,000 per year for four years to go to college. Your father invested P5,000 in 7% account…

A: investment is the process in which money is spent in the present to receive a greater sum of money…

Q: What is the macroeconomic equilibrium? The macroeconomic equilibrium is real GDP of $ ___ trillion…

A: The term "aggregate supply" refers to the overall volume of goods and services offered in the…

Q: Which of the following is NOT an example of a firm benefiting from economies of scope? Kleenex…

A: Economies of Scale: Economies of scale refer to the business situation when a firm produces huge…

Q: Jordan usually pays a price between $14 and $20 per kilogram of sugar. His monthly total expenditure…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: 8. Which of the following is/are considered unemployment? A. A police officer left the old job and…

A: Unemployment refers to the situation where people are looking for a job and able to work.

Q: Given a concave PPC and l-curve in country Y for goods A and B, state the conditions for maximum…

A: Introduction Consumption is the amount of money spend on consumer goods & services. Consumption…

Q: Carefully explain what is happening in the following markets. Indicate the impact if any on demand,…

A: As we know that market forces demand, and supply are the determining factors of price. When demand…

Q: The table below shows the total benefit, in dollars, that Diana derives from consuming two goods,…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Mr. Rankine bought a piece of property for P100,000 down payment for 10 years deferred semiannual…

A: The semi-annual payments can be thought of as annuity due payments, and in year three, we need to…

Q: Another term for deflation is Select the correct answer below: inverse inflation O negative…

A: Deflation refers to the general decrease in prices of goods and services.

Q: An important function of the Bank of Canada is to: Multiple Choice sue bonds on behalf of large…

A: Money is the main & most important ‘medium of exchange’ in an economy. Through these medium…

Q: 2. Given a Q = 100-2P and Qs = 6P-20 a. Compute the equilibrium price, p*, and equilibrium quantity,…

A: Given Demand function QD=100-2P ......(1) Supply function QS=6P-20…

Q: firm produces 220 units of a good which cost an average of £8.25 each to produce and sells them at a…

A: Introduction: Total Revenue: the total revenue of a firm is the revenue that remains after…

Q: Price (dollars per CD-R 2 Do Qo Q₁ Quantity (CD-Rs per week) Write an example of your choice that…

A: Write an example of your choice that would fit to the figure above.

Q: uppose there is trade between Spain and France Suppose that each produce only two goods, and that…

A: You have posted multiple-part questions, so as per our policy only the first three parts are…

Q: a tax of $10 per ton of coal causes the price, inclusive of the tax, to increase from $60 per ton to…

A: When a tax is imposed by the government, some proportion of it is borne by the consumers while the…

Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…

A: exports are the goods and services that are sold to other countries and imports are the goods and…

Q: The cost of producing a units of a commodity is given by C(x) = 100+ 40x + 2x². (a) Find C(0),…

A: Variable costs change depend on the amount of output produced. Variable costs may incorporate labor,…

Q: Assuming that a few firms control gasoline supply and talk to each other to reduce supply, what…

A: Supply: It refers to the goods and services that are available in the market. The increase in the…

Q: Suppose that the economy is characterized by the following behavioural equations: • C = 300+ 0.3 Yd…

A: IS curve shows equilibrium in the goods and services market. LM curve shows equilibrium in the money…

Q: 1. When the official dollar price of a foreign currency is set below its equilibrium level, the…

A: Exchange rate is the price of a currency in terms of other’s currency.

Q: Is this a positive economic statement: The 2022 FIFA World Cup is scheduled to be the 22nd running…

A: Positive economic statements are not based on opinions and judgment; rather these are objective and…

Q: A consumer of two goods has indirect utility v(p, w) = √w -1/2 P1 + P2 (a) Find the indirect…

A: Given v(p,w)=wp1-1/2+p2-1/2 ......(1) In the first subpart, we have to calculate the indirect…

Q: For an open economy, the equation Y=C+I+G+ NX is an identity. If we define national saving, S, as…

A: For an economy, The GDP is measured by the equation:- Y = C + I + G + NX. Where Y = Income C =…

Q: TRUE or FALSE and EXPLAIN The demand for pie will increase if: a) The price of sugar decreases b)…

A: Demand shows as inverse relationship between price and quantity demanded. The demand curve slopes…

Q: 4. A decision-maker must choose between two lotteries, L₁ and L₂. The lottery L₁ gives 0 dollars…

A: Lottery 1 gives: $0 with probability 1/4 $20 with probability 3/4 Lottery 2 gives $12 for sure

Q: A consumer has utility u(x₁, x₂) = x₁ + x1x2. Suppose that, because of a shortage of good 1, the…

A: Utility function : u(x1 , x2 ) = x1 + x1x2 Price of good 1 : P1 , Price of good 2 : P2 Income =…

Q: If the number of people classified as unemployed is 5,000 and the number of people classified as…

A: When someone actively seeks employment but is unsuccessful, they are said to be unemployed. The…

Q: In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its…

A: Introduction In the case of a competitive firm, the average total cost will be downward sloping as…

Q: An economy can experience economic growth with no inflation if _______. A. it does not…

A: An economy can grow without the inflation when there is enhancement in productivity due to…

Q: True of False 1. Comparative advantage means production at a lower opportunity cost 2. Quantitative…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: he UST-ECE Department purchased a Communications Trainer worth P 250,000. Freight and insurance…

A: Purchasing cost of a Communications Trainer =P250,000 Freight and insurance charges =P18,000 Broker…

Q: Any compound lottery can distribution of outcomes. be eg. if reduced a... a. L₁ = (p₁,..., pu), L₂ =…

A: A thing is a lottery if it has many alternative potential outcomes (sets of characteristics), one of…

Question

Help me please

A market is said to be purely competitive if there is a
large number of (gap), the output of all firms are
(gap) and there is (gap)
2. Spill-over cost, also known as (gap) is a term
used to describe some loss or damage that a (gap)
causes a third party
3. (gap) also known as positive externalities occurs
when the consumption or (gap) causes a benefit to
a third party
4. Large number of sellers and buyers
-plurality
-consumer welfare
-homogeneity
-free entry and exit
-allocation of resources
5. Outputs are homogenous
-consumer welfare
-spill-over benefits
-plurality
-mobility of resources
-identical
6. No artificial obstacles or barriers
-allocation of resources
-free entry and exit
-plurality
-identical
-spill-over benefits
7. Modified by fiscal or governmental action
-market failure
-allocation of resources
-artificial obstacles
-unbridled competition
-spill-over cost
8. Producers tend to ignore cost that they can a
-inefficient allocation of resources

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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 s
16. 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
Marginal Benefit (MB) MBBETA to Firm MBALPHA Tax = $100 25 50 75 100 Emissions (tons) Figure 16.5 Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free. Refer to Figure 16.5. The government decides to impose a tax on pollution of $100 per ton of emissions. Which of the follow are true? (Select all that are true) O a. As a result of the tax, the total emissions will decrease by 50 units O b. As a result of the tax, both firms will decrease emissions by the same amount O c. As a result of the tax, Alpha will cut more emissions than Beta O d. Before the tax, Beta produced more emissions than Alpha O e. The amount of tax collected is $2500 O f. After the tax, Beta will produce 50 tons more than Alpha Og. The tax was intended to decrease production by 50 units for each firm. O h. As a result of the tax,…
Figure 10-1 Social Cost Supply 3.00 2.80 2.07 1.50 Demand 24 30 38 50 QUANTITY (Units oftobacco) Refer to Figure 10-1. This graph represents the tobacco industry. The industry creates O a. positive externalities. O b.no equilibrium isthe market. OC. negative externalities. O'd.no externalities. PRICE (Dollars per unit)
Price Ssocial Sinternal $7.00 $6.00 $5.00 D $4.00 Dinternal 3,000 3,500 Quantity externality. In the market shown in the diagram above, there is a Select one: a. negative production b. negative consumption c. positive production d. positive consumption
Determine the type of market failure represented by the scenario below. Buying a used appliance on Ebay Select one: O a. negative externality Ob. public good Oc positive externality O d. tragedy of the commons e. asymmetric information
cap-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…
Only typed answer and please don't use chatgpt The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q. 1A. How many leather is produced in the free market if the externality is not corrected. B) What is the free market price of the leather if the externality is not corrected? C) What is the social marginal cost?
10. A local drama company proposes a new neighborhood theater in San Francisco. Before approving the permit, the city planner completes a study of the theater's impact on the surrounding community. a. One finding of the study is that the theaters attract traffic, which adversely affects the community. The city planner estimates that the cost to the community from the extra traffic is $5 per ticket. What kind of an externality is this? Why? b. Graph the market for theater tickets, labeling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output. Also show the per-unit amount of the externality. c. Upon further review, the city planner uncovers a second externality. Rehearsals for the plays tend to run until late at night, with actors, stagehands, and other theater members coming and going at various hours. The planner has found that the increased foot traffic improves the safety of the surrounding streets, an estimated…
When externalities are present in a market ... Omarket equilibrium cannot be reached Othe equilibrium price and quantity are too high Othe equilibrium price in the market is not efficient Oonly the equilibrium quantity is efficient RAZER
This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand 200 500 650 Quantity a) Without any government intervention, what is the market determined price and quantity? b) What is the price of the externality? c) What is the socially optimal price and quantity? d) What should the government do (impose a tax or provide a subsidy) to internalize this externality? What is the amount of the the corrective tax/subsidy needed to be to move the outcome from the market equilibrium to the socially-optimal outcome?
The following graph shows market equilibrium in the presence of an externality in an economy. The equilibrium level of output for the firm is _____. Figure 17.1 Show Transcribed Text a. 0 units b. between 0 and 100 units c. 160 units d. 100 units e. between 100 and 160 units