Social efficiency requires that, if Q 1 units are bought and sold in a market, then the ____ of Q 1 equals the social marginal cost of Q 1.   A. Pareto-efficiency   B. social welfare   C. social marginal benefit   D. social net-gain

Q: Suppose a service is currently produced by perfectly competitive private firms. That good has the…

A: The perfect competition is a market condition in which there will be a very large number of buyers…

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: Provide an example for each of the four goods: Private Good, Common Resource, Club Good, Public…

A: In economics, goods are mainly categorized under 4 categories that are a public good, private good…

Q: How do property rights affect externalities and market failure? Do goods and services by definition…

A: Answer-

Q: concepts of Market actions and its implications.

A: Market action: Market action refers to that market that reflects all relevant information and…

Q: The economy below has a linear production possibility frontier, given by C=Y-G/q. The government has…

A: Since public good is inferior, its quantity demanded goes down if it becomes cheaper. Here because…

Q: The economy below has a linear production possibility frontier, given by C=Y-G/q. The government has…

A: For inferior goods, quantity demanded decrease if price decrease. Here public good has become…

Q: Which of the following best describes a weak form of market efficiency? A. it reflects all public…

A: Market efficiency refers to the extent or degree to which market prices reflect all available and…

Q: When the government provides free and reduced lunches to low-income students, it is addressing which…

A: When the price mechanism in turn fails for accounting of all of the benefits and costs that are…

Q: Describe at least three reasons why market failure occur

A: The main reasons of Market failure occurs in the following ways:- 1.Negative Externalities:- This…

Q: Paul's firm

A: Given : Cp( qp ) = 7.6 qp + 2.2. Cs( qs ) = 7.6 qs + 2.2. Total units produced = 595 units Half of…

Q: fou

A: An economic problem means the problem of making of choices which occurs mainly due to the scarcity…

Q: QUESTION 24 Consider the following provision of public good problem: Citizen 1 initial budget: w1 =…

A: Given; Initial budget of citizen 1; w1=$80000Initial budget of citizen 2; w2=$60000Cost of public…

Q: A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can…

A: Given, Each plant works up-to 250 days in a year Plant A can produce= 10 units of good X or 5 units…

Q: Lindahl taxes charge each consumer ___________________ and result in ___________________ of a public…

A: Public goods are the goods which are non-rival and non-excludable in nature. Non-rival goods the…

Q: In which ways can a government make sure that the social cost is reflected in the firm’s supply? How…

A: Externalities is the situation where the action of one agent has some impact whether positive or…

Q: Explain three ways economist define market efficient. How does efficiency relates to the economist's…

A: Externalities, monopoly, information asymmetries, and factor immobility are all examples of market…

Q: Allocative efficiency means that   a the marginal benefit of the product exceeds its marginal cost.…

A: Productive efficiency and Allocative efficiency are two concepts achieved in the long run in a…

Q: An externality arises when one economic agent's actions affect the welfare of others in ways that…

A: The indirect benefit or cost being caused to third parties mainly arising due to the effect of…

Q: Provide short answer for the following. 1. Market failure. 2.Externality. 3.Substitution effect…

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

Q: What is the efficient outcome in this market? Equivalently, which types of bikes should change their…

A: Individual preferences are typically assumed in welfare economics, and efforts are made to improve…

Q: Question THREE Some reasons why resources could be allocated inefficiently by the market are…

A:

Q: Describe how capitalist competition could trigger an overproduction of investment goods.

A: Capitalism is commonly thought of as associate degree national economy within which non-public…

Q: Which of the following is NOT true about the social marginal cost curve? O It represents the…

A: Marginal social cost refers to the cost to society in production or consumption of one extra unit of…

Q: Because the free market (competitive) equilibrium maximizes social efficiency, why would the…

A: Government intervention signifies the actions taken by the government to alter the behavior of…

Q: Explain the "Externalities theory" in general Explain the concept of "social marginal cost" Give one…

A: 1.Externalities means,the cost which are not directly associated to a certain action.Externality may…

Q: Describe and explain a case in which the market does not allocate an efficient amount of resources.

A: Allocation is efficient when price charged is equal to marginal cost (MC), such that the sum of…

Q: Suppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and…

A: Externality when welfare of someone who is not directly involved  in the economic  activity is gets…

Q: The management of society’s resources is important because: a. None b. The rich should get more…

A: Resources A resource is a service or other item that is utilized to create commodities and services…

Q: slope of the production possibilities frontier illustrates: The demand for the products shown. The…

A: opportunity cost measures the trade-off between two goods.

Q: Explain the difference in the distribution mechanism for goods and services in the market and…

A: As we know, in the market system, the factors of production are owned by private individuals.…

Q: The market allocation is a level of output: a.That equates marginal social cost to marginal private…

A: Marginal private cost implies the cost of providing each unit of output. It is depicted by supply…

Q: The market for good Q is perfectly competitive. However, Consumers' marginal benefit is MB = 90-Q…

A: This is a case of negative externalities. The firm tends to produce larger than socially optimal…

Q: 7. According to Marx, Market Mechanisms refer only to: a. Production, and profit maximization b.…

A: Karl Marx was one of the famous economist who developed his thier on Market mechanism.l

Q: Explain why externalities pose a problem for the utilitarian/invisible hand argument

A: The Invisible hand argument by Adam Smith Suggests that the consumers as well as the firms will…

Q: produces a positive externality if it prevents other people from getting sick and a negative…

A: Externalities are positive or negative side effects arise from the production or consumption of some…

Q: Lucia is waiting in line to receive a free t-shirt at a charity event. Because the shirts are free,…

A: Choices Are Made at the Margin. Economists argue that most choices are made “at the margin.” The…

Q: When the government makes sure that gas pumps accurately measure the amount of gas they provide, it…

A: Market failure refers to a situation that arises as a result of the inefficient allocation of…