Positive externalityNo externalityNegative externalityAnswer BankThe U.S. government decides toLyle and JuliafromThehing companyicagohouse all of its nuclear wasteto Los Angeles with their newborninfant who cries the entire wayillegally hunts the Coelacanth,material at Cactus Cliff, WY. Asa critically endangered fish that is closeto extinctionwith all nuclear waste, there isno fail-safe protection methodJane raises bees to produce honeyRonald, the first in his family to attendfor her business, but her bees alsocollege, graduates from medical schoolpollinate many flowers in theneighborhood where she lives.and decides to return home to work as adoctor in his old neighborhood.

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Answered: Positive externality No externality…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price Ssocial Sinternal $7.00 $6.00 $5.00 D $4.00 Dinternal 3,000 3,500 Quantity externality. In the market shown in the diagram above, there is a Select one: a. negative production b. negative consumption c. positive production d. positive consumption
Concept Question 1.5 E Question Help The graph to the right depicts the U.S. textile industry in competitive equilibrium. The 100- curve MEC shows the marginal external cost of production that is not currently reflected in the market price. 90- 1.) Using the line drawing tool, draw the marginal social cost curve. Label it 'MsC. 80- 70- 2.) Using the point drawing tool, indicate the socially efficient level of output and price. Label it 'E' Carefully follow the instructions above, and only draw the required objects. S=MC 60- 50- 40- 30- 20- MEC 10 0- 50 100 150 200 250 300 36o 400 450 500 Industry Output
Fish that swim in international waters are a common good that are freely available toanyone who wants to catch them, but this leads to the problem of over-fishing. At theheart of this problem lies an externality. Using appropriate diagrams andaccompanying discussion, show both how and why this over-fishing takes place. Inyour explanation, identify the source of the externality.
Which activity generates a negative externality? O The only two hardware stores in town agree to form a cartel and fix prices. O You buy a neA Lexus and then discover it needs a new alternator. O After Judith buys life insurance, she begins skydiving classes on the weckends. O Your neighbor starts his noisy construction project at 6:00 a.m. on weekends.
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
“The capacity of the earth’s atmosphere in absorbing carbon emission without a serious climate effect is a common resource. Now, we are approaching the tragedy of commons in the form of severe climate change by excessive carbon emission.” Explain whether you agree with this statement around 150words
Ricky, a retired railroad conductor and Lucy, a full time lab technician are next door neighbors in an apartment building. Ricky loves to play loud heavy metal music, which can be heard for hours during the evening.Lucy can't stand heavy metal, which often rattles the wall of her small apartment from the large speakers next door. A. What is the externality in the example above? B. What command-and-control policies might the landlord impose? Could such policies lead to an inefficient outcome? C. If the landlord refuses to get involved in the despute. Based on the ideas associated with the Coase theorem, how might Ricky and Lucy reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?
A student using an e-cigarette in a library emits clouds of vapor that disrupt others working close to them. is this market power or externality
Which of the following are examples of negative externalities? A. Reduced spread of COVID-19 and other infectious diseases from people physically distancing and wearing masks. B. Unsightly oil rigs offshore from Santa Barbara, diminishing the quality of the view for beachgoers and coastal homeowners. C. Reduced incidence of the common flu stemming from more people obtaining flu shots during the Fall. D. Reduced crime rates stemming from rapid economic growth and reduced unemployment. E. High gas prices caused by rapid demand growth in China. F. Job losses associated with a factory closure in the United States, because a factory was opened in Mexico to replace it. G. Noise from traffic on a busy street. H. Light pollution from cities making it more difficult for observatories to view distant stars. I. Noise pollution eminating from windmills on the North Shore of Oahu. J. Pollution emissions from power plants.
Explain the role of the government is trying to provide a solution when an externality is present
2 The market for education confers positive externalities on society. Which of the following is an example of a positive externality that it provides? Higher quality of public institutions like government and law Subsidies for providing education Higher salary for the person earning a degree More colleges and universities X OOOO W F2 3 16 80 F3 E 888 FA R DE F % V T MacBook Air 6 Y B & 7 H tv NA 2 N 8 K M 0 W Aa zoom 0
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?

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