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- Explain three ways economist define market efficient. How does efficiency relates to the economist's definition of market failure? What market structure is least likely to represent a failed market?Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of the table below shows the total amount of garbage (in tons) that each firm currently produces. The other rows of the table show the cost of reducing garbage produced by the first five tons, the second five tons, and so on. Elm Maple Oak Cherry Current production of garbage (in tons) 20 40 60 80 Cost of reducing garbage by first five tons $5,500 $6,300 $7,200 $3,000 Cost of reducing garbage by second five tons $6,000 $7,200 $7,500 $4,000 Cost of reducing garbage by third five tons $6,500 $8,100 $7,800 $5,000 Cost of reducing garbage by fouth five tons $7,000 $9,000 $8,100 $6,000 Cost of reducing garbage by fifth five tons $0 $9,900 $8,400 $7,000 Calculate the cost of requiring the Maple firm to reduce the weight of its garbage by one-fourth. Please format your answer as…Explain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality of Production or (B) Negative Externality of Consumption or (C) Positive Externality of Production or (D) Positive Externality of Consumption: Almawassi village does not have a public fire department, some homeowners purchased private fire protection services to provide a positive externality to neighboring properties, which are less at risk of the protected neighbor's fire spreading to their (unprotected) house. Wakefulness due to a neighbor listening to loud music late at night. a person smoked heavily in a public place. A farmer who uses pesticides to produce vegetables A person planted ornamental trees along Salahiddeen street Creative laboratories which try to find vaccine for COVID 19 The corporate development of some free software to benefit students A software company that creates social media programs No. 2 3 4 5 6 7 8 Answer
- Why do you think that command economies .3 ?constrain economic freedomTo what extent is the economy likely to be the key external factor determining the success of businesses? (Answer in 2-3 paragraphs)Switzerland has over 500 watch manufacturers. Most of them are quite small and they cluster around the so-called "Watch Valley" which is an area covering the Jura Mountains from Geneva to Basel. Swiss watches dominate the world's fine watch market. a) Explain how geographic clustering of the Swiss watch industry helps to create external economies of scale. b) It is quite possible that some other country has a lower average cost curve for watch production (e.g. due to lower wages). Yet Switzerland continues to be the world's largest producer and exporter of fine watches. Explain why external EOS have a tendency to cause established pattern of production and trade to be "locked in."
- Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table shows the total amount of garbage (in tons) that each firm currently produces. The other rows of the table show the cost of reducing garbage produced by the first five tons, the second five tons, and so on. First, calculate the cost of requiring each firm to reduce the weight of its garbage by one-fourth. Now, imagine that the government issues marketable permits for the current level of garbage, but the permits will shrink the weight of allowable garbage for each firm by one-fourth. What will be the result of this alternative approach to reducing pollution?What is production efficiency and product mix efficiency? What is the main condition for each type of these efficiencies.50 people travel from Mississauga to Toronto. The Go Train takes 20 minutes. The average time for a person to reach downtown when driving is t = 100 + 0.5q and it depends on the number of D drivers on the road. a. Give a labelled diagram to compare the non-cooperative solution to the cooperative solution. Label the efficiency loss. The Marginal Time of commuting t' = 100 + D is twice as steep with the same vertical intercepts as the average time of commuting t = 100 + 0.5D. b. What is the total time for all 50 people if they behave non - cooperatively? What is the total time if they behave cooperatively. c. Use your diagram to show how a highway toll (per unit tax) could be used to correct this efficiency loss.
- Jackie land is known for the production of Cupcakes and Robots. The following is a PPT for Jackie land: A B C D E F G H I J Cupcakes: 0 2 6 10 14 18 22 26 28 30 Robots: 30 28 26 22 18 14 10 6 2 0 Draw and label (each axis and each point). Put cupcakes on the Y Indicate on the graph with Point K where inefficient Indicate on graph with Point L where unattainable is Note that points A – J indicate efficient uses ofExplain the difference between productive and allocation efficiency. How do you think a centrally planned economy versus a market economy would perform under each measure of efficiencySome environmental laws in the United States prohibit the use of benefit-cost analysis in areas of environmental policy. For example, the Clean Air Act declares that air quality standards are to be determined purely on the basis of protecting public health with “an adequate margin of safety,” and forbids the administrator of the Environmental Protection Agency from considering costs in setting standards. Provide a critique to such an approach from the perspective of economic efficiency, using a real world example. What might the consequences of such an approach be? This is not an essay question.