Exhibit 30-2 Price and Cost 0,0₂ Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private cost of expanding output from Q, to Q₂ is the area of a) Q₁CBQ₂. Ob) ABE. Q₁AEQ₂ Quantity d) Q₁ABQ₂

Only typed answer  You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q.   Instruction: Round your answers to the nearest two decimal places.   a. What is the socially efficient level of output?   units     b. Given these costs and market demand, how much output would a competitive industry produce?   units     c. Given these costs and market demand, how much output would a monopolist produce?   units     d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.   Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…

A utility company is closely monitoring a new set of federal guidelines recently passed by the EPA (Environmental Protection Agency) regarding allowable green house (CO2) emission levels. In this example, the primary external factor of concern for the utility company in question. environment is the A Technological Regulatory (also political and legal) C Competitive D Economic

Price 10 9 8 7 6 Cr 4 3 2 1 0 0 100 200 300 400 500 600 Quantity Answers typed in all of the blanks will be automatically saved. X₂ X² Ω· equilibrium, the price is 3 PMC=S 700 800 900 1,000 1,100 1,200 SWTP Consider the attached graph showing a market with a positive externality. At the competitive market and the quantity is 600 D=WTP At this competitive equilibrium, consumer surplus is Type your answer here, producer surplus is the damage to the environment is Type your answer here Type your answer here, and the total external benefits caused in the production of the good is Type your answer here. Societal welfare - the sum of consumer surplus and producer surplus less

Refer to Figure. Which of the following statements is correct? Price 22 24 22 81 18 16 Social cost (private cost and external cost) Supply (private cost) Demand (private value) 120 160 Quantity a. The private cost of producing the 160th unit of output is $16 b. The social cost of producing the 160th unit of output is $22. c. d. The external cost of producing the 160th unit of output is $6. All of the above are correct.

By imposing a tax on the production of electricity equal to the cost of acid rain, the government will cause electric utilities to internalize the externality. As a consequence, the cost of the acid rain will become a OA. social cost borne by the public, and the demand curve for electricity will shift down. OB. social cost borne by the public, and the demand curve for electricity will shift up. C. private cost borne by the utilities, and the supply curve for electricity will shift down. D. private cost borne by the utilities, and the supply curve for electricity will shift up. Question Viewer

A market with negative externalities will tend to compared to a market producing the socially optimal output. O overproduce and sell at a lower price O overproduce and sell at a higher price underproduce and sell at a higher price O underproduce and sell at a lower price

PRICE (Dollars per ton) 70 63 56 49 42 35 28 + 21 T 14 7 0 Demand +++ 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Millions of tons) Graph Input Tool Daily Demand for Pollution Rights Price (Dollars per ton) Quantity Demanded (Millions of tons) 7 360 Suppose the government has determined that the socially optimal quantity of particulate matter is 120 million tons per day. One way governments can charge firms for pollution rights is by imposing a per-unit tax on emissions. A tax (or price in this case) of $ of particulate matter emitted will achieve the desired level of pollution. ? per ton Now suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the desired level of pollution. Instead, it auctions off tradable pollution permits. Each permit entitles its owner to emit one ton of particulate matter per day. To achieve the socially optimal quantity of pollution, the government auctions off 120 million…

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Nimrah has a pet parrot that gives her a benefit (expressed in dollars) of $200. The parrot's squawking imposed a negative externality on Haya of $100. Nimrah has the right to have pets, however noisy, in the house. Assume they can bargain costlessly and enforce any agreement they come up with. Which solution below increases total surplus? O Haya pays Nimrah $100 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $200. O Haya pays Nimrah $200 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $100. O It is not possible to increase total surplus with payments.