210"40"What kind of externality is present in this market?O a. A negative consumption externality of x-10.Ob. A positive consumption externality of x = 20.Oc. A positive consumption externality of x = 10.Od. A negative consumption externality of x-20.#1•Supply(P-40+Q₂)10 "Demand (P-200-QSocial Marginal BenefitP-20-9.2009210QSuppose the government imposas a policy (tax or subsidy) such that the new Supply curve lies on the Social Marginal Cost curve. What area represents the government revenue or expenditure from thispolicy?Ⓒa.DIGHOb. E-HⒸH+G+D+E+H+KⒸd.E+HIK K100100100100100100100100100p=0.1d.p=18887868584820ALB0COGHG+DⒸd. C+H+K5101520253035Suppose you are given some information on a firm's production costs in Table 1, where K is the firm's capital, Lis labor (number of workers and is the output level. For which of the following price is itcertain that the firm will make a positive profit in the long run? (There may be more than one correct answer!ap-10b.p-240FC100100100JOb.+G+D+E+H+K100100100100100100KDEHvc060 90154575001051209020110120125128129New SupplySupplyThe figure above represents a market before and after government intervention. New Supply represents the supply curve after the policy is imposed.DemandWhat area represents govemment revenue/expenditure after the policy is imposen?O4E+H

Since you have posted multiple questions, we will provide the solution to only the first three…

11 D(P-20-Q (PQ) What kind of externality is present in this market? Ⓒa. A negative consumption externality of x-10. Ob. A positive consumption externality of x = 20. Oc. A positive consumption externality of x-10. d. A negative consumption externality of x-20. vid Marginal Be P-30-9. 210

11 D(P-20-Q (PQ) What kind of externality is present in this market? Ⓒa. A negative consumption externality of x-10. Ob. A positive consumption externality of x = 20. Oc. A positive consumption externality of x-10. d. A negative consumption externality of x-20. vid Marginal Be P-30-9. 210

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Chapter1: Making Economics Decisions

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Question

210
"
40
"
What kind of externality is present in this market?
O a. A negative consumption externality of x-10.
Ob. A positive consumption externality of x = 20.
Oc. A positive consumption externality of x = 10.
Od. A negative consumption externality of x-20.
#1
•
Supply(P-40+Q₂)
10 "
Demand (P-200-Q
Social Marginal Benefit
P-20-9.
200
9
210
Q
Suppose the government imposas a policy (tax or subsidy) such that the new Supply curve lies on the Social Marginal Cost curve. What area represents the government revenue or expenditure from this
policy?
Ⓒa.DIGH
Ob. E-H
ⒸH+G+D+E+H+K
Ⓒd.E+HIK

K
100
100
100
100
100
100
100
100
100
p=0.1
d.p=1
88
87
86
85
84
82
0
A
L
B
0
C
OGHG+D
Ⓒd. C+H+K
5
10
15
20
25
30
35
Suppose you are given some information on a firm's production costs in Table 1, where K is the firm's capital, Lis labor (number of workers and is the output level. For which of the following price is it
certain that the firm will make a positive profit in the long run? (There may be more than one correct answer!
ap-10
b.p-2
40
FC
100
100
100
J
Ob.+G+D+E+H+K
100
100
100
100
100
100
K
DE
H
vc
0
60 90
15
45
75
00
105
120
9
0
20
110
120
125
128
129
New Supply
Supply
The figure above represents a market before and after government intervention. New Supply represents the supply curve after the policy is imposed.
Demand
What area represents govemment revenue/expenditure after the policy is imposen?
O4E+H

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