Answered: Please assist with questions 4-7. The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please assist with questions 4-7. The options for each question are as follows:

Question 4 - greater than, less than or equal to

Question 5 - shifts outward to the social benefit curve, shifts inward to the social benefit curve or remains unchanged.

Question 6 - shifts outward to the social cost curve, shifts inward to the social cost curve or remains unchanged.

Question 7 - social cost and the social benefit curve intersect, private cost and the social benefit curve intersect, private cost and the private benefit curve intersect or social cost and the private benefit curve intersect

SCENARIO: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people
who do not drink and drive.
(1) The type of market failure represented by the scenario is a/an
(2) The market fails in this scenario because
(3) Solution to the market failure is
(4) The equilibrium quantity is
(5) The private benefit curve is
(6) The private cost curve is
(7) The Efficient output is found where the
the socially efficient quantity.

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