An externality, which is sometimes also called a (Spillover OR Social cost) , can have a negative or a positive impact on the third party. An externality occurs when an exchange between a (Buyer and seller OR Population of two cities) has an impact on a third party who (Is not OR is) part of the exchange. For a negative externality, the private costs of an action are (Less or More) than the costs imposed on society as a whole. For a positive externality, the private benefits of an action are (Less or More) than the social benefits. An example of positive externality is (Vccination OR Good wether), whereas an example of negative externality is (Population OR Hurricane)

CENGAGE MINDTAP Homework #6 (Ch 10 & 11) Consider the market for electric cars. Suppose that a electric car manufacturing facility dumps sludge into a nearby river, creating a negative externality for those living downstream from the facility, Producing additional electric cars imposes a constant per-unit external cost of $245. The following graph shows the demand (private value) curve and the supply (private cost) curve for electric cars. Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $245 per unit. PRICE (Dollars per unit of electric cars) 700 030 560 400 420 280 210 140 70 0 QUANTITY (Units of electric cars) ng cengage.com The market equilibrium quantity is B Supply (Private Cost) Demand (Private Value) Social Cost units of electric cars, but the socially optimal quantity of electric car production is To create an incentive for the firm to produce the socially optimal quantity of electric cars, the government could impose a per unit of…

The following is a copy of the information from Question 1: Consider Product NE, which has a negative externality associated with its production and use ( i.e., the “Incidental Cost” ( IC) of each unit of Product NE is greater than zero). You are told that :                              * The “Efficient” Output of Product NE = 9000 units                              * The Free-Market Equilibrium Output of Product NE = 10,000 units                              * The Consumer’s Surplus + Producer’s Surplus on Unit Number 6000 ( i.e., on that one unit ALONE) is equal to $ 70 ( i.e., the sum of CS + PS = $ 70)                              * The Cumulative Surplus on the first 9000 units produced is equal to $ 175,000 ( i.e., the sum of the surplus( to society) on ALL 9000 units adds up to $ 175,000) Is the Cumulative Surplus on the first 10,000 units ( i.e., ALL 10,000 units together) greater than $ 175,000, less than $ 175,000, or exactly equal to $ 175,000 ?   a. Greater Than $…

Give an example of a private solution to an externality.  What is the Coase theorem? Why are private economic participants sometimes unable to solve the problems caused by an externality?

Public wifi hotspots grant many external benefits on society: more equitable access to the internet, increased educational opportunities, and so on. Therefore, the market equilibrium quantity of public wifi hotspots does not equal the socially optimal quantity. The following graph plots the demand for public wifi hotspots (their private value), the supply of public wifi hotspots (the private cost of producing them), and the social value of public wifi hotspots, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.

Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the factory. Producing an additional ton of bolts imposes a constant marginal external cost (MEC) of $75 per ton. The following graph shows the demand (marginal private benefits, or MPB) curve and the supply (marginal private costs, or MPC) curve for bolts.   Use the purple points (diamond symbol) to plot the marginal social costs (MS) curve when the marginal external cost is $75 per ton.

Explain how externalities can be solved.

Consider the market illustrated in the figure to the right. Supply curve S₁ represents the private cost of production and demand curve D₁ represents the private benefit from consumption. Suppose consumption of this good creates a positive externality. Show how the externality affects the market. 1.) Use the line drawing tool to draw either a new supply (S₂) or demand (D₂) curve incorporating the positive externality in consumption. Properly label this line. 2.) Use the point drawing tool to indicate the market equilibrium price and quantity. Label this point 'Market equilibrium'. 3.) Use the point drawing tool to indicate the efficient equilibrium price and quantity. Label this point 'Efficient equilibrium'. Carefully follow the instructions above, and only draw the required objects. Price Quantity S₁ D₁ N

If a good that generates negative externalities is priced to internalize the externality, then its price will ______    and its output will______   .

This is an end-of-chapter problem that I'm struggling with! thanks!