The demand curve for a public good is also called the   A)total social benefit curve.   B)marginal social benefit curve.   C)total willingness-to-pay curve.   D)total welfare curve.

Distinguish the true statements from the false statements. True False     Market failure occurs when negative externalities are present but not when positive externalities are present. The government sometimes intervenes when a market failure occurs. Externalities are the only example of market failure. Market failure occurs when either negative or positive externalities are present. Market failure is when a market provision of a good result in an inefficient quanitity.

Costs and Revenue MR MC D Quantity Based on the graph, you can answers. MR curve is defined as 20-2Q, MC curve is defined as 2Q, and Demand curve is definded as 20 - Q. What is the quantities that maximize a social benefit? Your answer should be 1 decimal points such as 2.1 or 3.1. Do not write ratio such as 10/3. Do not include $. Answer should be 200 instead of $200

The table below shows cost data for producing different amounts of higher education. The market for higher education produces positive externalities in the form of more informed voters and higher rates of technological growth. Use the given information to answer the questions below. Price Supply Private Demand Private+Social Demand 63 76 102 15 70 70 96 28 77 64 90 41 84 58 84 54 91 52 78 How much higher education would we expect to be produced in the free market? What is the socially optimal output of higher education? F12 F10 11 F9

Define a public good. Give an example of a public good using your definition. Explain how to construct the market demand curve for a public good.

The production of fabric generates toxic effluents related to the dyes used. This is typically disposed of with wastewater, which generates pollution. If the government does not intervene, the market for fabric has an equilibrium price of $250 per roll and an equilibrium quantity of 10,000 rolls. a.How would the socially optimal quantity of fabric compare to the free market equilibrium quantity of 10,000 rolls? Why? b. Using a supply and demand graph show the effect on social welfare of allowing the market for fabric to operate without government intervention. Label all the curves and relevant points on your graph. c. Would a government subsidy or tax help the market achieve the social optimum? Explain. Show the necessary subsidy/tax on your graph. d. Explain how this intervention helps achieve the social optimum and what information would be necessary to implement it.

Match the following with: overproduced, efficiency, underproduced, deadweight lost. 1) A negative externality leads to ________.          2) A public good tends to be ________.   3) Reducing pollution leads to ________.

Marginal Social Cost:  P = 1 + 2 Q Graph the market. Be sure to fully and clearly label the graph, including:  the Demand (D), the Marginal Private Cost (MPC), the Marginal Social Cost (MSC), the Private Equilibrium Quantity (Qpe), Private Equilibrium Price as (Ppe), the Socially Optimal Price (Ps), the Socially Optimal Quantity (Qs), and the Deadweight Loss (DWL).