Refer to the diagram, in which S is the market supply curve and S is a supply curve comprising all costs of production, including external costs. Assume that the number of people affected by these external costs is large. Without government interference, this market will reach Select one: O A. an overallocation of resources to this product. O B. an optimal allocation of society's resources. O C. an underallocation of resources to this product. O D. a higher price than is consistent with an optimal allocation of resources.

2

HELP WITH ALL 4 QUESTIONS PLEASE

Suppose scientific research generates external benefits. Without government intervention, the market for scientific research would A) produce the efficient amount. B) produce more than the efficient amount. O C) produce some research, but less than the efficient amount. D) produce zero research. E) either produce more than or less than the efficient amount depending on whether the external benefit is on the production or consumption of the research.

Suppose electricity generates a negative externality in production. If so, then O A. the marginal social benefit of electricity is less than the marginal private benefit. O B. the marginal social cost of electricity equals the marginal private cost. Oc. the marginal social cost of electricity equals the marginal social benefit. O D. the marginal social cost of electricity is less than the marginal private cost. O E. the marginal social cost of electricity is greater than the marginal private cost.

Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The following table shows each resident's willingness to pay for each acre of the park. Acres 1 2 3 4 5 6 7 Sophia 0 acres O1 acre 2 acres 10 8 6 3 1 O3 acres 0 Willingness to Pay (Dollars) Amber Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the largest park size for which the majority of residents would vote "yes?" 24 18 14 8 6 4 2 Cedric 6 5 4 3 2 1 0

PRICE (Dollars per unit of electricity) 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1 O 4 5 QUANTITY (Units of electricity) 3 6 Supply (Private Cost) Demand (Private Value) 7 Social Cost ? The market equilibrium quantity is units of electricity, but the socially optimal quantity of electricity production is To create an incentive for the firm to produce the socially optimal quantity of electricity, the government could impose a unit of electricity. units. of $ per

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.

2.40 2.00 1.60 1.20 0.80 0.40 0 600 O1200 12000 13000 14000 15000 Supply Demand 16000 If a price ceiling of $0.80 is imposed on this market, what is the dead weight loss? O 400 800

Out of This World is the only private rocket ride in the nation. The table sets out the demand schedule for rides and the cost schedule for producing the private rocket ride. At the market equilibrium, no children under 10 years old ride the private rocket. Out of This World offers children a discount of 50 percent, which brings in more families. This discount______ consumer surplus and producer surplus. O A. increases; decreases O B. decreases; decreases OC. increases; increases O D. decreases; increases Out of This World is efficient. Price (dollars per ride) 40 36 32 28 24 20 16 12 8 Quantity (rides per day) 0 100 200 300 400 500 600 700 800 Total cost (dollars per day) 1000 1800 2600 3400 4200 5000 5800 6600 7400