Question 38Consider a market where production of the good is creating a negative externality. In the marketequilibrium, there is a deadweight loss because theO social cost is greater than the internal benefit.O internal benefit is not equal to the external benefit.O internal cost of production is less than the social cost.O internal benefit is less than the internal cost.O internal cost of production is not equal to the internal benefit.

In an economy, negative externality refers to the situation when there is an additional cost…

Answered: Consider a market where production of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the following graph, an increase in output from 120 units to 160 units would $24 $22 $20 $18 $16 Price $14- $12- $10- $8 $6 $4 $2- 20 40 Supply (private cost and external cost) 60 80 100 120 140 160 180 200 be an action of which a benevolent social planner would approve. increase total economic well-being. increase the external cost per unit of output. O move the market from a socially efficient outcome to a socially inefficient outcome. -Supply (private cost) Demand (private value) Quantity
Without government intervention, a negative externality will lead to: O A. a decrease in a firm's profits. OB. production above the socially optimal level. OC. falling levels of social marginal benefit. OD. a reduction in the profit-maximizing level of output. ← PREVIOUS ission SUBMIT
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When externalities are present, the government can O A. tax the firm in order to raise the social cost to the private cost. eliminate the external costs. 00 B. O C. O D. None of the above. tax the firm in order to raise the private cost to the social cost.
Q68
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
Price (S) OA. Panel 1 OC. Panels 1 and 2 P₂ Panel 1 S₂ S₁ q Price (S) Panel 2 Q3 Q4 Quantity S OB. Panel 2 OD. Neither panels D₂ Q₂ Q₁ Quantity A shift from S₁ to S₂ reflects the change that happens when a negative externality is taken into account. A shift from D₁ to D₂ reflects the change that happens when a positive externality is taken into account. Refer to the above figures. Which of the panels would be consistent with the situation in which external benefits exist? D₁ q
Crying babies on an airplane impose a negative externality on those sitting around them.The airline can force the parents of the babies to internalize the cost by Select one: O a. Charging a higher ticket fee for babies and young children. O b. imposing a minimum flying age of 5 years old. O c. evenly dispersing the babies and young children throughout the plane. O d. seating all parents, babies and young children in the same section of the plane. O e. providing discount tickets for babies and young children. Next page ge n this page
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The production Compact Fluorescent Lightbulbs (CFL) use mercury in their production process. Mercury is a heavy metal and considered bad for the environment. Suppose the marginal external cost is $5 per lightbulb and the government levies a corrective tax of $5.50 per lightbulb. With this new tax: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b Question 4 с d The price will be below the marginal social cost. Not enough light bulbs will be produced. The price will be below the marginal social benefit. The price will be below the marginal cost to produce light bulbs.
ASAP plz Why don't people/stores make different decisions? Cost is a factor: a case of foam take-out containers costs $25, compared with $58 for paper and recyclable-plastics. How does this affect the firm's profit? Are consumers willing to pay more? Negative externality Consider the demand and supply given above. Suppose there is an external cost given by MEC=5Q. Find social equilibrium price and quantity. Draw a graph and label both private and social equilibrium.
Suppose Firm A is the anly producer in some market. You are given information about the market demand and marginal cost for Firm As product Firm A's market demand is given by: Q= 60 - P Firm A's marginal cost is given by: MC = 6+Q A) Calculate the profit-maximizing output for Firm A. B) Calculate the profit-maximizing price for Firm A. Calculate what would have been the socially efficient output level produced in this market.

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