Part 2 of 4The following diagram illustrates the situation in the dry cleaning market. The marginal social cost (Susc) of the pollutionrises as the quantity of items cleaned per week rises. In addition, there are two demand curves, one for a smaller city.Dg. the other for a larger city. DWhy does the social cost curve (Susc) have a different slope than the private cost curve (SMPC)?A. The marginal social cost of pollution is increasing at a faster rate than the marginal private cost of dry cleaningOB. The marginal social cost of dry cleaning declines as output increases.OC. The total social cost of dry cleaning increases as output increases.OD. The marginal private cost of dry cleaning increases as output increases.OE The marginal social cost of dry cleaning increases as output increases.Taxing Externalities 3What tax rate per item cleaned will achieve economic efficiency in the smaller city? $ (Enter your response roundedto two decimal places.)Price (dollars per item cleaned)18.0016.0014.00-12:00-10.00-8:00-6.00HW ScoreO Point4.002.00-0.00200 400Quantity ( Price (dollars per item cleaned)18.00-16.00-14.0012.00-10.00-8.00-6.00-4.00-2.00-0.000SMSCSUPCDD200 400 600 800 1000 1200 1400 1600 1800Quantity (items cleaned per week in 1000s)Q

Private Marginal benefit( PMB) refers to additional benefit a consumer receive when an additional…

Answered: Part 2 of 4 The following diagram…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2
The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Which quantity is socially optimal (i.e. what is the efficient quantity)? What is the deadweight loss generated by the externality?
a. When a firm imposes an external social cost (negative externality), the government should impose a tax on production equal to the externality cost to ensure that the market will achieve the socially optimal outcome. Select one: True False b. The socially optimal level of emissions of most pollutants is zero. Select one: True False c. Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit. Select one: True False
question 3
The optimal level of pollution is O the level that has no effect on the environment. O found where the marginal cost of pollution equals the marginal benefit. found where the marginal benefit of pollution is maximized. O found where the total cost of pollution equals the total benefit. zero.
There are three industrial firms in a town Firm Initial Pollution Level Cost of Reducing Pollution by 1 Unit A 30 units $20 40 units 20 units B с $30 $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. 1. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? 2. How much higher would the costs of pollution reduction be if the permits could not be traded?
52
Im confused on this question.
What is the externality in the market for alcohol? Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves. Identify the market equilibrium quantity, the socially optimal quantity, and thedeadweight loss associated with the externality. What policies do governments use to try to eliminate the externality associated with drinking DRAW PICTURE PLUS STEP BY STEP HOW TO DRAW IT Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves 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.
Which of the following is an example of an activity generating a positive externality? O A. You buy a new car and then find $5,000 in the door panel. OB. Your next-door neighbor mows the lawn at 6 am. C. Your next-door neighbor installs a bat house and the bats eat mosquitoes. D. After Joe buys health insurance, he decides to quit smoking.
The graph shows the unregulated market for electricity. Suppose that at every quantity produced, the marginal external cost of electricity equals the marginal private cost of production. To show the market outcome, draw the following four items on the graph: 1. Draw a point to show the marginal social cost when the utility produces 500 kilowatts per day. Label it 1. 2. Draw the marginal social cost curve. Label it MSC . 3. Draw a point to show the electricity produced and its marginal social cost. Label it 2. 4. Draw a shape to show the deadweight loss created. Label it DWL . >>> Draw only the objects specified in the question.
Explain: “Without a market for pollution rights, dumping pollutants into the air or water is costless; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter.” What is the significance of this opportunity cost to the search for better technology to reduce pollution?

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