a. Suppose that the carbon sequestration that results from planting a tree is worth $4. Graph the social cost curve that accounts for the positive externality of trees. Instructions: Use the tool provided 'MCsocial and plot only the two endpoints across the range of output (0-80). b. Ignoring the positive externality. trees will be planted. trees. c. The socially optimal quantity of trees is: [ d. Graph the deadweight loss that occurs when suppliers are unable to capture the $4 external benefit they provide from planting trees. Instructions: Use the tool provided DWL to illustrate this area on the graph. Drag the points to move or resize The deadweight loss when suppliers are unable to capture the $4 external benefit they provide from planting trees is: $[

a. Suppose that the carbon sequestration that results from planting a tree is worth $4. Graph the social cost curve that accounts for the positive externality of trees. Instructions: Use the tool provided 'MCsocial and plot only the two endpoints across the range of output (0-80). b. Ignoring the positive externality. trees will be planted. trees. c. The socially optimal quantity of trees is: [ d. Graph the deadweight loss that occurs when suppliers are unable to capture the $4 external benefit they provide from planting trees. Instructions: Use the tool provided DWL to illustrate this area on the graph. Drag the points to move or resize The deadweight loss when suppliers are unable to capture the $4 external benefit they provide from planting trees is: $[

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7) A Detroit factory is polluting more than the socially optimal amount. The city government then imposes a lump sum tax on the business, but the business didn't change how much they were polluting. Explain what was wrong with the city's decision.
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Price
Address the question in the image.
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
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…
The equations below represent the demand and supply curves for annual gym memberships in a city. qD= 500 − 2p, qS=0.5p − 50 Because physical activity leads to better health, the city estimates that each annual gym membership saves $30 of public spending on healthcare per year (a positive externality). a. In a graph, show the market and the socially optimal equilibria for annual gym memberships in this city. Does the market equilibrium result in under- or over-consumption of memberships? What is the deadweight loss associated with the market failure in this situation? b. Would you recommend this city to implement a subsidy (a negative Pigouvian tax) to correct this market failure? If so, how much would be the subsidy per unit? What would be the effects of your proposed policy on the quantity, price, and aggregate welfare?
5) Mr. Leon is at it again! He vandalized a public park. Now society has to clean it up. Based on the numbers below what would be the socially optimal amount that should be cleaned up? % cleaned total benefits total costs 25 $10,000 $1,000 50 $15,000 $4,000 75 $18,000 $7,000 100 $19,000 $10,000 *Show the marginal benefits and marginal costs, graphically.
Refer to graph and answer a and b
1. Externalities - Definition and examples An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a v externality. The following graph shows the demand and supply curves for a good with this typé of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good.
When producing a good generates external costs, the producing firm's supply curve will Multiple Choicea. be vertical.b. overstate the total cost of production.c. be above (to the left of) the total-cost supply curve.d. understate the total cost of production.
Are socially efficient level of emission and market efficiency is equal? Explain with help of diagram?
D. What is Total Cost E. What is profit F. What is Socially optimum output