For an output level below QE, the value of a unit to a buyer is the cost of a unit to a seller. Suppose a firm that produces for this market employs a private security force that makes town residents, many of whom have no business with the company, feel safer. This scenario is characterized by which is an example of

Some economists claim that early child care generates an external benefit to society. a. What is the market equilibrium? What is the socially optimal outcome? How do they differ? b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? c. How much is the total government subsidy each month to reach a socially optimal outcome?

Which of the following instruments is government most likely to apply when confronted with a positive externality? (a) Subsidies. (b) Taxation. (c) Coase bargaining. (d) Usage fees.

part B

2. Refer to Graph 10-1. Assume the externality is not internalised. What is the loss to society from the last unit of the good produced by the market? A. P3-P2 B. P2-P1 C. P3-P1 D. ZeroGraph 10-1 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.

ter 5 i A public good Multiple Choice generally results in substantial negative externalities. can never be provided by a nongovernmental organization. costs essentially nothing to produce and is thus provided by the government at a zero price. can't be provided to one person without making it available to others as well.

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I Price and cost (thousands of dollars per student) 20 16 12 8 0 200 A) 0 students; 400 students B) 600 students; 600 students C) 400 students; 600 students D) 600 students; 400 students E) 400 students; 400 students S = MC MSB MB 400 600 800 1,000 Quantity (students per year) 35) 35) The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium number of students being privately educated is and the efficient quantity is

If the market for a good is producing a negative externality in production (e.g. a polluting firm):(a) In market equilibrium, the marginal cost (MC) to society exceeds the marginal cost (MC) of production.b) In market equilibrium the marginal benefits to society exceed the marginal cost (MC) of production.(c) In market equilibrium the marginal costs (MC) to society exceed the total benefits to societyd) In market equilibrium the private Cmg (MC) of production exceeds the Cmg (MC) for society.For each of the alternatives, explain which is correct and explain which are false or uncertain.