When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Question

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Answer 1

Question

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

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Answer 2

Question

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

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Answer 3

Question

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

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Answer 4

Question

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

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Answer 5

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

Answer 6

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

Answer 7

Chapter 75, Problem 1CYU

To determine

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the case of positive externalities, the supply curve is also the marginal cost curve because the production or consumption of a product benefits the third party but it is not directly considered in the market transaction as it indirectly involves in the transactions or indirectly provides benefits to the society.

In case of negative externalities these curves would not be the same because here, the production or consumption of goods costs the third party in the market.

A specific measure that indicates the difference between these curves is the marginal social cost curve represents the data by covering both marginal external and marginal private cost and the marginal private cost is the supply curve of the firm.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Introduction: The benefits which are obtained by the third party who is not buying, selling, or consuming the good are called external benefits. For example, using a vehicle to travel that reduces the congestion on the road because it provides benefit to other drivers so that they can drive quickly and safely.

Answer 12

Ch. 75 - Prob. 1CYU Ch. 75 - Prob. 2CYU Ch. 75 - Prob. 1MCQ Ch. 75 - Prob. 2MCQ Ch. 75 - Prob. 3MCQ Ch. 75 - Prob. 4MCQ Ch. 75 - Prob. 5MCQ Ch. 75 - Prob. 6MCQ Ch. 75 - Prob. 7MCQ Ch. 75 - Prob. 1FRQ

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

When the supply curve is also the marginal social cost curve when they are different and the specific measure which shows the distance between these two curves.

Explanation of Solution

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Chapter 75 Solutions