A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm

A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Innodiff, a technology company introduce an innovation in bioengineering on which they are granted a patent.Select one:a. The patent should protect Innodiff’s economic rentindefinitelyb. Without patents no firm would innovatec. During the period of the patent a public good becomes aprivate goodd. Innodiff should waive the patent since the innovation is apublic good Please tell me which of these is correct from these multiple choice awnsers
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The dry-cleaning industry is a major source of air pollution. Based on this information, which conclusion is the most likely to be true about the price and output of dry-cleaning services? O Because dry-cleaning does not have much demand, pollution is not affecting their demand. O Dry-cleaning is a complimentary good. O Dry-cleaners see it as less profitable to cause pollution. Because there are no financial consequences for the pollution, fixing it wouldn't be as profitable for dry-cleaners.
The following graphs illustrate how positive externalities can be generated by both the production (supply) and consumption (demand) of the vaccine. Dead Weight Loss Supply Marginal Cost P Market Social Quantity Optimum D2 Marginal Social Benefit Positive Externality D₁- Marginal Private Benefit ■FIGURE 5-4 Price of Marginal benefit, MB Underproduction S-PMC SMC = PMC-MB -Deadweight loss D= PMB = SMB Market Failure Due to Positive Production Externality in the Oil Exploration Market Expenditures on oil exploration by any company have a positive externality because they offer more profitable opportuni- ties for other companies. This leads to a social marginal cost that is below the private marginal cost, and a social optimum quantity (Q₂) that is greater than the competitive market equilibri um quantity (Q). There is underpro- duction of Q-Q, with an associated deadweight loss of area ABC. Quantity of oil Positive Externality- Demand Please review the following on the foundations of…
Q49
Deadweight loss mealures the loss in society's welfare that occurs because a monopolist does not produce the socially efficient level of output True O False
how does the covid vaccination affect or influence one’s personal & family health. how does it affect society as well?
Herd immunity is a negative health externality. O True O False
Only typed answer
Only typed answer
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…
Supply 10.00 9.00 8.00 7.00 6.00 MSC 5.00 4.00 Demand 3.00 2.00 1.00 25000 50000 75000 100000 125000 150000 175000 200000 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 O d. subsidy = $4 B.