Discuss the public choice theory or model. How does it relate to rivalness and excludability?

The table below shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social costs. How does accounting for the externality affect the equilibrium price and quantity? Price Qd Qs1 Qs2 $20 0 10 8 $18 1 9 7 $15 2.5 7.5 5.5 $12 4 6 4 $10 5 5 3 $5 7.5 2.5 0.5 What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs. Identify the equilibrium price and quantity if we are able to account for social costs. Does it make sense that accounting for the negative externality results in a higher price? Explain your answer.

Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even though it is federally subsidized.  This illustrates:      explain your answer   The adverse selection problem The moral hazard problem A failure of the market for externalities The existence of positive externalities

Which of the following are examples of Command and Control policies on regulating externalities?