The market below depicts supply, demand and marginal social cost in the widget market.1.00HA0.900.800.700.000.500.400.30020H255075PemiI100 125 150 175 200To correct for the externality, what should be used?O a. A subsidy of $0.20b. A tax of $0.20OC. A subsidy of $0.30Od. A tax of $0.30

Externality:It is an economic problem when people take benefit from the economic goods. It is…

Answered: 1.00 0.90 0.80 0.70 0.00 0.50 0.40 0,30…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a good is exchanged between buyers and sellers without consideration of external costs O A. the quantity exchanged will be less than the socially optimal quantity B. the quantity exchanged will be more than the socially optimal quantity C. an external benefit exists D. marginal social cost is less than marginal private cost O E. marginal social cost equals marginal private cost
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19:36 ! 13:41 3.00 KB/S 015 The market below depicts supply, demand and marginal social cost in the widget market. 0.00 0.00 0.70 0.00 050 0.40 020 50 100 125 150 175 2001 To correct for the externality, what should be used? Oa. A subsidy of $0.20 b. A tax of $0.20 Oc. A subsidy of $0.30 Od. A tax of $0.30 =
Time left 0:27:07 Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced? Select one: The equilibrium quantity is less than the socially optimal quantity. O a. O b. The equilibrium quantity is greater than the socially optimal quantity. Oc. They are equal. O d. No relationship exists. Next page 26°C Mostly cloudy tour on this page Type here to search
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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? O a. negative production externality O b. positive consumption externality O c. negative consumption externality O d. positive production externality Demand 350 Supply MSB 400
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How to set the Pigouvian Taxes to correct the problem with negative externalities? Eliminate the divergence between ... Mark all that applies. Group of answer choices the marginal social cost and marginal private cost at the socially optimal level of consumption. the polluter’s private benefit and social benefit. the average social cost and average private costs. input costs and output prices at the market equilibrium. the marginal social cost and marginal private cost at the market equilibrium.
Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…
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Mn5.
ģi Refer to the table below, which presents information on a market that provides positive externalities on society. Private marginal benefit Marginal cost $300,000 $340,000 $310,000 $330,000 $320,000 $320,000 $330,000 $310,000 $340,000 $300,000 $350,000 $290,000 Calculate the quantity that would be produced if society did not incorporate the social marginal benefits of this good or service. Type your answer... Quantity 6,000 7,000 8,000 9,000 10,000 11,000 F1 a 2 W JAN X Q 18 F2 # 3 20 F3 F $ 4 F4 R % 5 F5 T MacBook Air A 6 F6 Y & 887 stv F7 U * 00 8 FB O ( 9 Private+social marginal benefit $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 F9 1 W 0 F10 Aa zoom P F11 Submit F12 = IT ľ

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1.00 0.90 0.80 0.70 0.00 0.50 0.40 0,30 020 25 50 75 supply, demand and marginal social cost in the widget market. ply 100 125 160 176 200 To correct for the externality, what should be used? O a. A subsidy of $0.20 b. A tax of $0.20 OC. A subsidy of $0.30 Od. A tax of $0.30