a. How does the amount produced by a free market compare with the socially-optimal level of production? Identify the total private surplus, external costs, and total social surplus both at the level of production that occurs in a free market and at the socially- optimal level of production. What is the deadweight loss of the externality?

2. A perfectly competitive market exists for almonds. Demand for almonds is Q= 200 – P where P is the price of almonds and Q is the total quantity of almonds. The private total Q? The production of almonds cost for the unregulated market is C 50 + 80Q + Q² First, solve for the 2 creates an externality where the total external cost is E = Pigouvian tax (per unit of output of almonds) that results in the social optimum. Suppose that one company, MegaAlmonds, becomes a monopolist in the production of almonds. What is the optimal tax that should be placed on the almonds in this case?

I would like help with this question. The graph should be the one answered.

Please explain both statements in detail with graphs and examples. "When external benefits exist, maximizing private profits produces less than the social optimum" and "when external costs exist, maximizing private profits produces more than the social optimum".

Please draw and upload an externality graph for the "Truck Tire" market in the US. Use the data provided to draw each axis, plot the points and create the following curves: 1) Demand, 2) Supply (private), and 3) Supply (social), Also mark equilibrium on both S (private)and S (social). After you draw the curve, explain it and describe how government can use it to regulate this tire market.        Price Quantity Demanded Quantity Supplied (Private) Quantity Supplied (Social)   $ 300 $10 million $ 35 million $ 30 million   $ 250 $15 million $30 million $25 million   $ 200 $20 million $25 million $20 million   $150 $25 million $20 million $15 million   $ 100 30 million 15 million 10 million

2. Suppose that demand for a product is Q = 1200 - 4P and supply is Q = -240 +2 P. Furthermore, suppose that the marginal external damage of this product is $12 per unit. How many more units of this product will the free market produce than is socially optimal? Calculate the deadweight loss associated with the externality.

The following table shows how the marginal benefit of a service varies for five consumers.   Quantity 1 2 3 4 Serkan 150 125 100 75 Asuman 125 100 75 50 Bahar 100 75 50 25 Murat 200 150 125 125 Meriç 600 400 200 150   Derive the demand curve for this service assuming that it is a public good. If marginal cost of the good is 850, what is the efficient output of the public good? If marginal cost of the good is 425, what is the efficient output of the public good? If marginal cost of the good is 850, what is the efficient output assuming it is private good?

The graph shows the unregulated market for electricity.   Suppose that at every quantity produced, the marginal external cost of electricity equals the marginal private cost of production.   To show the market outcome, draw the following four items on the graph:   1. Draw a point to show the marginal social cost when the utility produces 500 kilowatts per day. Label it 1. 2. Draw the marginal social cost curve. Label it MSC . 3. Draw a point to show the electricity produced and its marginal social cost. Label it 2. 4. Draw a shape to show the deadweight loss created. Label it DWL . >>> Draw only the objects specified in the question.

Suppose that at market equilibrium, the marginal private cost is $29 and the marginal social cost is $52. What is the value of the external cost to society?

Consider a manufactured good whose production process generates pollution.  The demand for the product is Q=100-3P.  The market supply function is Q=P.  The marginal external cost is MEC=2Q.  What is the emissions tax that needs to be imposed to achieve the social optimum?  Illustrate on graph  What is the economic incidence of this emissions tax? In other words, what proportion of this tax will be paid by producers of this product and what proportion of the tax will be paid by consumers?