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A: Answer to the question is as follows:
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Q: None
A:
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A: The goods can be broadly categorized into two groups: Public good and Private good. Private goods…
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A: Answer is given below
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Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: Marginal abatement cost (MAC) represents the additional cost incurred by a firm or entity to reduce…
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Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: MAC1 = 11 - 2E1 MAC2 = 8.5 - E2 MED = 0.5EAgg
Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: Marginal Abatement Costs of the two firms MAC1=24-2E1 MAC2=20-E2 Marginal External Damage: MED=2EAgg…
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A: A good is a pure public good if the good is nonrival and nonexcludable in nature.
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A: There are different types of goods depending on degree of excludability and rivalry.
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A: 1.National defense:nonrivalrous and nonexcludable. It comes under government and therefore national…
Q: Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.
A: Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.
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A: In a market, government intervention is a major concern as different types of market system defines…
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A: Public goods: Public goods are items or services that serve all people in society that are often…
Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: MAC_1 = 24 - 2E_1 MAC_2 = 16 - E_2, MED = 2E_Agg. where E_Agg = E_1 + E_2
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- The market for perfume is characterized by: MPB=200-Q and MPC= 3Q with a marginal social benefit of -$12 caused by the others smelling the perfume. The externality is ______ and on the _____ side of the market. The inefficient quantity is ______ and the price is _____. The allocatively efficient quantity in the market is ______. If the government were to correct the externality, it would _______ the market by $______ per unit of perfume. Word Bank: negative, demand, 50, 150, 47, tax, 12, positive, supply, subsidyWhich of the following best represents a “non-excludable” good? A)Tollway. B)Air. C)None is correct. D)Private hospital wards. E)Private school education.A common resource is both excludable, non-rival excludable, rival Onon-excludable, non-rival non-excludable, rival and
- Suppose that the xyz industry produces a product that result in negative external cost to society. this information suggest thatExternalities: Suppose the daily inverse demand curve for gasoline in Portland is given by P = $100 – Q, the MC = 1.5Q, and the EMC = 1.5Q. Q is measured in thousands of gallons of gasoline per day. a. Graph the demand, marginal cost, and external marginal cost functions. b. How many gallons will be consumed per day if gasoline consumers do not consider the EMC of gasoline? c. How many gallons of gasoline will be consumed per day if gasoline consumers consider the EMC.Public goods are:a) neither nonrival nor nonexcludable in consumption b) nonexcludable but rival in consumptionc) rival but nonexcludable in consumptiond) both nonrival and nonexcludable in consumption
- Assume that radio broadcasts are nonrival and nonexcludable. Two people, Artie and Bill, listen to the same radio station during their commute. Each person values the radio station at $3$3 per day. Both Artie and Bill loathe listening to advertisements. Listening to advertisements makes Artie and Bill each worse off by $1.50$1.50 per day. The radio station needs $2$2 per day to continue operating, which it currently earns from advertisers ($2$2 per day is exactly what the airtime is worth to the advertisers). The radio station is considering asking for donations from Artie and Bill and getting rid of the advertising. Artie and Bill can choose to donate to prevent advertisements or not. If only one chooses to donate, he must donate the whole $2$2 to get rid of the ads. If both choose to donate, each pays $1.$1. Assume that both Artie and Bill are each trying to gain the most net benefit possible, and that they do not cooperate with each other. What is the socially efficient way to…The supply of fertilizer is described by the following equation: Qs= 3,000P where Qs is the supply per year and P is the price of fertilizer per ton. The demand for fertilizer is described by: Qd= 500,000 − 20,000P where Qd is tons of fertilizer demanded per year. The marginal external costs of $30 are associated with the production of each ton of fertilizer due to the pollution related to fertilizer production. explain your answers by showing your work. a) Assuming that fertilizer is sold in a competitive market, what is the market price?In the market for a certain pesticide, the following equations represent the private demand and supply: Private Demand: QD = 160 - P Private Supply: QS = 4P The use of this pesticide has a negative externality that affects nearby ecosystems, which is not reflected in the market price. The external cost is estimated to be $5 per unit of pesticide. By how much is the pesticide overconsumed under perfect competition? A) 1 units B) 3 units C) 4 units D) 5 units E) none of the above
- Question TWO Two categories of public goods are non-rival consumption goods and non-excludable goods. Discuss the similarities and differences between these two types of goods. If a good is non-rival in consumption, does that mean that it is also non-excludable? If a good is non-excludable, does that mean it is non-rival in consumption? Why might the market produce non-rival goods inefficiently? Why might the market produce non-excludable goods inefficiently?Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 MAC_2 = 10 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a cap and trade policy and sets the cap equal to the socially efficient level of emissions (E*_Agg). If firm 2 is initially grandfathered 2 permits, it will buy ____ more permits. (Note: your answer can be positive or negative; if it is positive, the firm is buying additional permits; if it is negative, the firm sells permits. So, for example, an answer of -10 implies that the firm sells 10 permits)What are the two characteristics of public goods? What is the free-rider problem as it related to public goods? Is U.S. border patrol a public good or a private good? Explain.
