When external benefits are significant:     market output is too low.   social surplus is maximized.   market output is too high.   market output is at the efficient level.

If positive externalities exist in a market, then OSocial cost is greater than private cost OSocial cost is equal to private cost OSocial cost is lower than private cost

A chemical company can produce Q units of a chemical H, with marginal costs of MC = 9 + Q, and can distribute the chemical at marketing marginal costs of MC = 1. The demand for H is given by P = 30 - 1.5Q. If an external market exists where H can be bought or sold without marketing expenses for $13, how much H should the firm produce? 4 units 10 units 7 units 5 units 0 units

Price $400 $320 $120 $2000 $3000 $4000 300 350 $6000 Marginal Social Cost Supply = MPC What is the dead weight loss at the market outcome? Demand = MB -MEC = $120 Thousands of Board Feet

The restaurant industry develops an exciting new technology, a robot that quickly prepares food in half the usual time of chefs. This increases supply (producers save costs on labor) and demand (consumers find it fun to watch the robot make a meal) such that the price remains constant. However, the robot runs on coal and produces a lot of pollution, generating an external cost on production. How do consumer and producer surplus change as a result of this new technology? Choice 1 of 4:Consumer surplus increases but the change in producer surplus is indeterminateChoice 2 of 4:Producer surplus increases but the change in consumer surplus is indeterminateChoice 3 of 4:Both producer and consumer surplus increaseChoice 4 of 4:Both producer and consumer surplus decrease

The price of good X is $7. But each unit of good X produces has an external cost of $1. What is the social cost of one unit of good X?

Given the following information:  Initially, a perfectly competitive market for a product is in equilibrium, with an upward-sloping straight-line market supply curve, a downward-sloping straight-line market demand curve, and a market price of $30 per unit.  Consumption of this product causes pollution.  Initially, the marginal external cost of the pollution caused by consuming the product is $9 per unit.  There is no government policy toward the externality. The government then mandates a shift to a new product version, and all firms adopt and produce the latest version.  Consumers view the new product version as equally as good as the initial product version. Consumption of the new version of the product causes less pollution, and the marginal external cost decreases by $3 per unit.  For each firm, production of the new product version does not change fixed cost, but it does increase average variable cost by $3 per unit. If necessary, the market adjusts to a new equilibrium.  There is…

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

The market for pens in Howards is perfectly competitive with no externalities. Market demand is given by Q=165-P. Market Supply is given by Q=P-16.What is total Surplus in this market?

Question 22 Refer to Figure 2  in Question 20. What price and quantity combination best represents the socially optimum price and number of concerts that should be organized? Group of answer choices P1 and Q0 P1 and Q1 P2 and Q0 P2 and Q1