(Figure: Output Levels II) The socially optimal output level could be achieved by a government quota of: Price ($) 100 80 60 40 20 SMC S = MC 100 200 300 400 500 Quantity of electricity 250 units of electricity. approximately 212 units of electricity. 175 units of electricity. 100 units of electricity.

21 24 P 500 300 250 50 50 M DE J F CH 91 ABG K S MSB D 50 80 90 100 Q Which of the following would lead to the allocatively efficient outcome? A subsidy A price floor of $250 A quota of 90 units A tax

Consider the supply of soybeans in South America and the demand for soybeans in China. Draw a graph in which you show the current market equilibrium price of soybeans and quantity of soybeans traded. Include the curve that shows the true social costs of soybean production. Show the socially optimal amount of soybeans traded. Show the price that should really be charged for soybeans to ensure that production moves to the socially optimal level. Ensure that you label your graph correctly (all curves, axes, prices and quantities labeled). Show the deadweight loss of soybean production. What intervention could be used to change the market price for soybeans to the level that would move the quantity of soybeans traded to the optimal level?    Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Social cost associated with a community owned resource can be internalized if a) the state imposes a tax on the user of the resource b) people are considerate of others account for the social cost in their consumption of the resource c) the community owned resources is converted to a privately-owned resource d) all of the above