a.)If the marginal social cost of the good is $2,000, what is the efficient output assuming that it is a pure private good? b.)If the marginal social cost of the good is $2,000, what is the efficient output assuming it is a pure public good?

Q: The Coase theorem states that     if transactions costs are low, property rights are assigned, and…

A: Coase theorem states that the ideal condition is that the involved party have the bargaining right…

Q: The Rational Rule for Society is that society should NOT produce another unit of a good if: Select…

A: In an economy, social welfare is the measure concern of the government due to which it wants to…

Q: There are two workers. Each worker’s demand for a public good is P = 20 − Q. The marginal cost of…

A: Step 1: Number of workers = 2 Demand for public good: P=20-Q MC of public good: MC=$24 In case of…

Q: What characteristic of public goods makes it very difficult for private firms to provide (or provide…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In what sense does the demand curve for a pure public good differ from that of a pure private good ?

A: Demand curve: The demand curve is a graphical portrayal of the connection between a decent or…

Q: Let Q be quantity of beer (in packs) consumed in the US. Assume beer consumption imposes a negative…

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: ) Show the government solution to a positive externality (in a graph), and the government solution…

A:

Q: Consider the following scenario: Suppose that a cafe enjoys a large increase in customers whenever…

A: An externality is a cost or benefit incurred or received by a producer that is not paid for by that…

Q: Refer to the diagrams below in which figures (a) and (b) show demand curves reflecting the prices…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: suppose that scientists discover that this particular product has a significant Positive…

A: Dead Weight Loss: A deadweight loss could be a social group price incurred as a result of market…

Q: Assume that each gallon of gas consumed creates extra costs for the citizens of Iola in the form of…

A: The MSC {marginal social cost} depicts the total cost for the production of further units that the…

Q: Because public goods are jointly consumed, which of the following is obtained by summing the private…

A: Public good is a good which is non rival and non excludable.

Q: In a competitive market in which the production of a good causes pollution, the socially optimal…

A: Externalities are the costs or benefits of an economic transaction incurred on a third party who is…

Q: Explain verbally and with a graph the concept of Positive Externalities. Explain all elements of the…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: QUESTION 4 Which of the following is true if good x is an externality exhibiting good. Consumers…

A: Externalities is the economic activities one one person which affect the well being of another…

Q: Find the social demand curve for the public good in this neighborhood. What is the y-intercept of…

A: The social demand curve for the public good can be calculated by adding the willingness to pay of…

Q: When should a private good be produced from an efficiency standpoint?  A.When the marginal cost…

A: Private good are those goods which are excludable and rivalrous .  Example ; food and clothing.…

Q: Draw the following situations as a graph format: 1. The graph will have the price (P) on the y-axis…

A: The fact of externalities in production and consumption also direct to market failure. Externalities…

Q: Draw diagram to show the effect of a positive externality that occurs as a result of a consumer’s…

A: Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: The marginal private costs and the marginal private benefits of a firm producing fuel-efficient cars…

A: When there is a positive benefit associated with production of a good, then it is said to be a…

Q: Consider the market for plastic straws, in which production causes pollution (air pollution, waste…

A: Answer: Given, Quantity demanded (marginal social benefit): Qd=6200-4P Marginal Private Costs:…

Q: 9. Efficiency in the presence of externalities Parks confer many external benefits on society: open…

A: Externalities refer to the costs or benefits of an economic transaction incurred on a third party…

Q: Use the following diagram, which depicts a typical market with a positive externality, to answer…

A: Answer (20): Without government intervention, the competitive equilibrium will prevail and the…

Q: Define a public good and, using a graph, explain the equilibrium of a pure public good.

A: Public good is non rival and non excludable.

Q: 41.  Which of the following describes a situation where the marginal social cost is greater than the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Answer the question based on the following information for a public good. Pa and Pb are the prices…

A: Optimal quantity is the most effective quantity to purchase goods and services at a specific time.

Q: Bill’s demand for hamburgers (a private good) is Q = 21 − 6P and Ted’s demand is Q = 6 − 3P. Write…

A: The marginal benefit of an additional good or service is the maximum a consumer is willing to pay…

Q: Consider a two-good economy with one private and one public good. There are four consumers in this…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: different if the product is a public good instead?

A: Goods and services are excludable when it is possible to prevent someone from consuming them. Goods…

Q: Complete the following table by selecting the appropriate definition i a public good rms. Term a…

A: Private goods, public goods, club goods, and common goods are types of goods.

Q: The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle…

A: This is an example of negative externality where a part of society who is not involved in production…

Q: A negative externality causes Select one: a. the social cost of production to be greater than the…

A: Externality is a situation in which the action of one party causes consequences to a third party who…

Q: (Negative Externalities) Suppose you wish to reduce a negative externality by imposing a tax on the…

A: The in cases, where the actions of one individual affect the other agents negatively, usually…

Q: Consider an economy with three people and two goods: private good (x) and public good (y). Suppose…

A: Answer -    Public Goods :- Public goods which are non-rivalious and non-exhaustive in nature and…

Q: explain both statements in detail with graphs and examples. "When external benefits exist,…

A: When external benefits exist, maximizing private profits produces less than the social optimum…

Q: Which of the following statements is true?   a. Competitive markets result in the socially…

A: Effluent Tax is that charge which is paid due to discharging waste to the environment and is imposed…

Q: Suppose the production possibility frontier for an economy that produces one public good (x) and one…

A: When two commodities are manufactured simultaneously, a production possibility curve (PPC) is used…

Q: The following table shows how the marginal benefit of a service varies for four consumers: a.)If the…

A:

Q: following table shows how the marginal benefit of a service varies for five consumers.   Quantity…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Question 3 Briefly explain why economists prefer to levy taxes on goods that generate negative…

A: Concept: A negative externality refers to when the production has an adverse effect on society. This…

Q: Air pollution creates a negative externality—a cost suffered by a third party as a result of an…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: A negative externality exists if A. there are price controls in a market. B. the marginal…

A: A negative externality is when the consumption or production of a good/service causes  negative…

Q: The figure shows the production of fertiliser by a perfectly competitive profit-maximising firm.…

A: Perfect competition is such a market structure where that are many buyers and many sellers. The good…

Q: What are the three problems facing a government trying to determine the optimal quantity of a public…

A: The commodities that tend to benefit all members of a society and are often being provided free of…

Q: What is the fundamental problem with goods that have externalities? private costs do not include…

A: Externality is a cost which impacts others. It is not reflected in price charges by the producers.…

Q: Consider an economy with three people and two goods: private good (x) and public good (y). Suppose…

A: Public Goods refer to the goods that are non-excludable and nonrival in nature. It is usually…

Q: Using the concepts of externalities and market failure, examine the possible economic effects of…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.