Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 10, Problem 1MCQ
To determine
The reason that electricity has negative production externality.
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A company that spends a huge amount of money to treat their waste and reduce a negative impact to the society ______.
a.
Decreases their external costs
b.
Increases their internal costs
c.
Causes no change
d.
Decreases their internal costs
If a Pigouvian tax is used to reduce carbon emissions, it must be set to be equal to1. the private marginal cost of productionb
2.The cost of the catastrophic outcomes
3. the total private cost of production
4.The marginal social cost of carbon emissions
0.90
0.85
0.80
0.75
0.70
0.65
0.60
0.55
0.50
0.45
0.40
50
100
150
200
250
300
What kind of externality is in the market above?
a. negative consumption externality
b. positive production externality
c. positive consumption externality
d. negative production externality
Demand
350
Supply
MSB
400
Chapter 10 Solutions
Foundations of Economics (8th Edition)
Ch. 10 - Prob. 1SPPACh. 10 - Prob. 2SPPACh. 10 - Prob. 3SPPACh. 10 - Prob. 4SPPACh. 10 - Prob. 5SPPACh. 10 - Prob. 6SPPACh. 10 - Prob. 7SPPACh. 10 - Prob. 8SPPACh. 10 - Prob. 9SPPACh. 10 - Prob. 10SPPA
Ch. 10 - Prob. 1IAPACh. 10 - Prob. 2IAPACh. 10 - Prob. 3IAPACh. 10 - Use the following information to work Problems 3...Ch. 10 - Prob. 5IAPACh. 10 - Prob. 6IAPACh. 10 - Prob. 7IAPACh. 10 - Prob. 8IAPACh. 10 - Prob. 9IAPACh. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQ
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