14 u Stippry ror carsTEComan 11 10 $ 9 8. 0 1 2 3 4 5 67 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.) 17.5 O 12.5 11.5 13.5 7.5 321 CO76543210

14 u Stippry ror carsTEComan 11 10 $ 9 8. 0 1 2 3 4 5 67 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.) 17.5 O 12.5 11.5 13.5 7.5 321 CO76543210

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph shows the unregulated market for electricity. The marginal external cost of the pollution created is equal to the marginal private cost of producing electricity at every quantity of electricity produced. Draw a point to show the marginal social cost when production is 500 kilowatts per day. Label it 1. Draw the marginal social cost curve. Label it MSC. ab Draw a point to show the quantity of electricity produced with no pollution control and the marginal social cost of the electricity generated. Label it 2. Draw a shape to show the deadweight loss with no pollution control. Label it DWL. The deadweight loss created by the pollution is $ >>> Remember that the price given on the y-axis in cents but you must answer in dollars. esc q a @ 2 W S #3 с e d $ 4 65. 1 14 t Oll 6 O & 7 Y 20
Time left 0:16:1 Suppose that elementary education creates a positive externality. If the government does not subsidize education, then Select one: the equilibrium quantity of education will be less than the socially optimal quantity of O a. education O b. the equilibrium quantity of education is optimal the equilibrium quantity of education will be greater than the socially optimal quantity of education C. Od. the equilibrium quantity of education will be equal to the socially optimal quantity of education Next page page r on this page
Help plz graph plz 3 8
2. Consider the following free market. $300 $200 $100 500 1200 Quantity i. Calculate consumer and producer surplus in this market. ii. If the marginal external cost of production is $10, the socially optimal quantity is 400 and the socially optimal price is $205. Show the new consumer and producer surplus and calculate them. Also show the deadweight loss on the graph and calculate it.
Draw a demand curve and describe the external factors thatdetermine demand.
Air horns impose many external costs on society: the risk of being deafened, the annoyance of being awakened in the middle of the night, and so on. Therefore, the market equilibrium quantity of air horns is not equal to the socially optimal quantity. The following graph shows the demand for air horns (their private value), the supply of air horns (the private cost of producing them), and the social cost of air horns, including both the private cost and external costs. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
WHY SHOULD OTHER PECPLE BENEFIT FROM MY HARD WORK? 1994 Wateron De tyh e d Figure 1 Figure 1 shows how Calvin carefully avoids creating a positive externality (think of this as the equivalent of a factory applying a filter to eliminate any polluting emissions). Assume that this way of snow shovelling does not create any additional costs for Calvin (no extra effort and he has no plans to return home any time soon). b) As creating positive externalities leads to a social problem (see question a), and Calvin's way of snow shovelling avoids creating positive externalities, does Calvin's behaviour imply an efficiency improvement from a social point of view? Explain.
੩ Macmillan Learning In accordance with the 1990. Clean Air Act, the state imposes a pollution limit on the market for steel manufacturing shown on the graph below. Place the line segment labeled "Pollution limit" at the optimal pollution limit. Price and cost ($ per ton) 3 2 1 10 9 Marginal social cost B 8 7 6 5 4 Pollution limit Marginal cost Demand = marginal benefit A 0 0 2 6 8 10 12 14 Quantity in thousands of tons 16 18 20 The socially optimal price is $ TOOLS хтоу
11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 8 1.00 300 600 900 What kind of externality is depicted above? O a. A negative production externality O b. A positive consumption externality c. A positive production externality d. A negative consumption externality Demand 1200 1500 1800 2100 Supply Marginal Social Benefit 2400
K Steel production creates pollution. If a tax is imposed on steel production equal to the marginal external cost of the pollution it creates, O A. steel producers will continue to produce the inefficient quantity of steel OB. the deadweight loss created by steel producers will be cut to zero OC. steel producers will cut pollution to zero O D. the market price of steel will rise by the amount of the tax Submit te:
@ Refer to the table below, which describes the market for cigarettes in terms of marginal benefits, private marginal costs, and private+social marginal costs. Marginal benefits Private + social marginal costs $12 $8 $10 $10 $8 $12 $6 $14 $4 $16 Quantity 100 200 300 400 500 Calculate the equilibrium quantity of cigarettes that would be produced and sold if society incorporated the negative externalities of cigarettes by taxing cigarettes. Type your answer... == 3 80 F3 16 с $ 888 FA VER % DFL V 5 T G B FO MacBook Air Y Private marginal costs $4 $6 $8 $10 $12 H & 7 A tv NA F7 U N * 00 8 1 ( 9 M K F9 O O Aa zoom