Supply10.009.008.007.006.00MSC5.004.00Demand3.002.001.0025000 50000 75000 100000 125000150000 175000 200000If a tax or subsidy were used to correct the externality, what would be chosen?O a. tax = $4O b. subsidy = $3O C. tax = $3O d. subsidy = $4B.

Answered: 10.00 Supply a.00 8.00 7.00 6.00 MSC…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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uncements us es $10 Materials $7 -Hill $5 49 sources 20 30 D Q If this market has a tax of $5 per unit imposed on it, what is the Deadweight Loss? O $7 O $25 O $30 O $100 IT * zoom
1. In this market, how much is the external cost from the production of each unit of tobacco? To reach the social optimum, should the government provide a subsidy or impose a tax? If so, how much tax or subsidy? 2. Is there a deadweight loss in this market? If so, why is there a deadweight loss?
A negative externality means the quantity in the market is _____ the allocatively efficient quanitity and can be corrected by a _____. A positive externality means the quantity in the market is _____ the allocatively efficient quantity and can be corrected by a ______. Word Bank: Larger than, tax, smaller than, subsidy, smaller than, equal to, subsidy, larger than, equal to, tax.
e2
Assume that a state authorizes a local authority which regulates cable TV service in your neighborhood. This authority then grants an exclusive operating franchise to a cable TV company. Cable TV is excludible but non-rival in use. What kind of market failure is this? O A) A positive externality O B) A public good. OCA club good DI A negatiVe externality
Let Q be the quantity of natural gas in tons from fracking. Assume fracking imposes a negative externality of $24 per ton. The private demand for natural gas from fracking is P = 200 - 4Q while the private supply curve is P = 20 + 2Q. If the government imposes a $24 tax per ton of natural gas from fracking, what is the change in the total surplus from before to after the imposition of the tax? O -$672. O $48. O $672. -$48.
In the graph above, what areas comprise producer surplus after a Pigovian tax has fully internalized the negative externality? Price Social Marginal Cost A Supply (Private Marginal Cost) K E 'H В Demand Quantity O C+F+l+D+G O B+C+D C+D O A+B+E O G+F+E
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8
11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Supply Marginal Social. Benefit Demand 300 600 900 1200 1500 1800 2100 2400 In the market depicted above, how large is the deadweight loss from the externality? O a. 1000 O b. 600 O c. 900 O d. 800
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N U Stippry ror caTS TECO a 14 13 12 11 10 $ 9 8. 6. 4 0 12 3 4 567 8910 Suppose that each car in Econland creates a $1 negative externality because of pollution. What is the producer surplus of Econland in the free market? (Note: A common question here is whether you should include the externality or not. This is part of this question for you to decide on whether to do so or not.) O 17.5 O 12.5 11.5 13.5 e7.5
3 Join: 095944 radebook Assessment 12.2 Homework Due on December 5, 2023 RO a Vrunula Homework Unanswered Due Dec 5th, 11:59 PM Based on the graph and assuming no externalities, the deadweight loss in this market is approximately equal to: b $500. $10 $8.50 $1,000. $1,500. d $3,000. $5 5/10 answered 2,400 3,000 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Unanswered. 2 attempts left MR MC ATC Q Search Demand Quantity Debora Open In Reading View 7 SULIR

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10.00 Supply a.00 8.00 7.00 6.00 MSC 5.00 4.00 Demand 3.00 2.00 1.00 25000 50000 75000 100000 150000 175000 200000 125000 If a tax or subsidy were used to correct the externality, what would be chosen? O a. tax = $4 O b. subsidy = $3 O c. tax = $3 Od. subsidy = S4