Consider the market for first-aid training classes. Market demand is given by P = 600 - Q. Market supply is given by P = Q. Individuals who have received first-aid training are very helpful in some urgent situations which is captured in a positive spillover, or externality, equal to Q/3. This is thus an external benefit related to the consumption of first-aid training. What is the deadweight loss if the externality is not dealt with? [Round your answer to 2 decimal places when needed]

Consider the market for first-aid training classes. Market demand is given by P = 600 - Q. Market supply is given by P = Q. Individuals who have received first-aid training are very helpful in some urgent situations which is captured in a positive spillover, or externality, equal to Q/3. This is thus an external benefit related to the consumption of first-aid training. What is the deadweight loss if the externality is not dealt with? [Round your answer to 2 decimal places when needed]

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 8QP

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