Consider a small town with a factory that produces cell phones. The factory's production causes air pollution, which affects the health of the residents. Draw a graph representing the market for cell phones in this town. Label the socially optimal level of output and the market equilibrium level of output. Explain the difference between the two levels.

What are some markets (goods or services) where an equilibrium might not be the most desirable point? Meaning, if left alone, the market produces too much or too little compared to societal needs.

Suppose 20 people each have the demand Q = 20 - Pfor streetlights, and 5 people have the demand Q = 18 - 2P for streetlights. The cost of building each streetlight is $10. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?

Please label the graph point where the socially optimal equilibrium is

1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the:cost of accommodation and food in Aspen.value of piano lessons.cost of buying a piano.amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality?Smith reducing the consumption of imported wine following an increase in the price of imported winePhoebe refusing to contribute to the building of a children’s park in her neighborhoodChristina accepting a payment in cash rather than in check for her laundry servicesTom playing music loudly in his room, disturbing his roommate who has an exam the next day3. A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?The firm should operate in the short run but shut down in the long run.The marginal cost…

MC Qu. 04-173 Refer to the provided graph. Suppose... Price 0 Quantity S Refer to the provided graph. Suppose consumers do not fully appreciate the benefits of the product whose market is shown in the graph. If an external agency is able to provide full information to consumers about the benefits of the product, then

Use the following graph to identify the equilibrium at the social optimum (Es), the competitive market equilibrium (EM), the quantity produced at the social optimum (Qs), and the quantity produced at the competitive market equilibrium (QM). Price S social Sinternal Dinternal quantity A Es BEM c) Qs D QM

Use the following information to answer Questions 1 - 4: In a competitive market for fresh lemonade, the market demand for 12-ounce servings is QD = 100 – 10P and the market supply is QS = 15P. Calculate the competitive market equilibrium price. Calculate the competitive market equilibrium quantity. Calculate Total Surplus at the competitive market equilibrium. Now suppose that the production of lemonade caused a costly negative externality on innocent bystanders (e.g., squirted acidic lemon juice in their eyes). Given the externality, would the unregulated market price of lemonade from 1 be efficient? If not, is it too high o too low?

3. Now reconsider the issue of soybeans from the perspective of Chinese consumers. Assume you are a Chinese consumer who drinks soymilk each day. Demonstrate using a graph how your consumption of soymilk differs from the socially optimal level. Is the price you pay for soymilk in current market conditions the correct amount, too high, or too low? Why? Ensure that you label your graph correctly (all curves, axes, price and quantities labeled). Show the deadweight loss of soymilk consumption, and what price should be charged for soymilk to move the amount of soymilk you drink to the optimal level.

Weel explained answer needed no Ai The Coase Theorem states that:           a) As long as property rights are well defined and no transaction costs exist, an efficient allocation will result                       b)As long as property rights are well defined and transaction costs are high, an efficient allocation will result.                       c)An efficient allocation will be equitable to all parties concerned.            d)Property rights should initially be assigned to those affected by a negative externality.