Quantity Private Value(Units)1234S6(Dollars)Select one:O a. $2O b. $10552018O.C.O d. $3161412Private Cost(Dollars)121518212427External Benefit(Dollars)1010.1010Refer to Table 10-3. What amount of subsidy per unit of output would move the market from the equilibrium level of output to the socially optimal level of output?1010

The table for private value, cost, and external benefit is provided below. Quantity Private…

Answered: Quantity Private Value - Private Cost…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 3QR

See similar textbooks

Similar questions

Price 24 20 16 12 1 1 T M 20 28 O Select one: O a Price floor of $20 O b. Per unit subsidy to consumers of $8 Oc. Per unit tax on producers of $8 d. Price Celing of $12 K 36 MSC MPC MSB Quantity If the government decides to intervene in this market, which of the following would lead to a socially optimal outcome?
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8
PRICE 20 18 16 14 12 10 8 6 4 2 Figure 10-3 Social Value Supply Demand, 2 4 6 8 10 12 14 16 18 20 QUANTITY Refer to Figure 10-3. If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would O a. introduce a subsidy of $4 per unit. O b. impose a tax of $4 per unit. O c. impose a tax of $2 per unit. O d. introduce a subsidy of $2 per unit.
Price (per pack) 11 10 9 8 7 -NW AS a 3 2 1 0 2 4 6 8 10 12 14 16 18 20 Quantity (millions of packs per year) DM DS If cigarettes are priced at $3 a pack. Instructions: Enter your responses as a whole number. a. what is the quantity demanded in the market? million packs per year b. what is the socially optimal quantity? million packs per year c. If the government were to Intervene and tax cigarettes, how large of a tax is needed per pack to achieve this optimal outcome?
P ($) Supply 100 90 80 70 60 50 Social benefit 40 30 20 10 Demand 0 5 10 15 20 25 30 35 40 45 50 Refer to the figure above. If the government wanted to tax or subsidize this good to achieve the socially-optimal level of output, it would Select one: a. impose a tax of $30 per unit. O b. introduce a subsidy of $30 per unit. c. impose a tax of $50 per unit. d. introduce a subsidy of $50 per unit.
Table 10-1 Quantity (Units) O 1 2 3 4 5 6 OOO 7 $2 $3 $9 Private Value O $10 (Dollars) 14 13 12 11 10 9 8 Private Cost Refer to Table 10-1. How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially optimal outcome? (Dollars) 10 11 12 13 14 15 16 External Cost (Dollars) 2 2 2 2 2 2 2
0 Figure 4 PRICE (Dollars per unit) 9.00 8.40 6.21 4.50 Social Cost Supply 48 60 76 100 QUANTITY (Units of tobacco) O $6.21 and 76 units, respectively. O $9.00 and 60 units, respectively. O $8.40 and 48 units, respectively. O $4.50 and 100 units, respectively. Demand Refer to Figure 4. This graph represents the tobacco industry. The socially optimal price and quantity are
Figure 1 24 22 18 16 6 0 Price 120 160 Social cost (private cost and external cost) O C. O d. $40. $240. Supply (private cost) Refer to Figure 1. An increase in output from 120 units to 160 units would -Demand (private value) a. increase total economic well-being. O b. decrease the external cost per unit of output. O c move the market from a socially efficient outcome to a socially inefficient outcome. O d. increase the price of the good from $18 to $24. Refer to Figure 1. The NET BENEFIT (defined as the benefit= bystanders - DWL) from reducing the quantity to 120 units from 160 units is equal O a. $0. There can be no benefit from reducing quantity, only loss in surplus. O b. $120. Quantity
QUESTION 36 Given the diagram below which of the following statements is true? 54.50 400 3.50 300 250 200 150 100 O123 45678 10 11 12 13H 15 Quantity hosandh of doe per mone OA. When the price is $2 there is a surplus of 4 units O B. When the price is $1:50 the quantity demanded is 4 units OC When the price is $3.50 the quantity demanded is 12 units OD. When the price is $3.00 there is a surplus of 4 units QUESTION 37 Which of the following is NOT a reason why countries impose tariffs on imports? O A. Protect domestic industries OB. Retaliation OC National security O D. None of the above QUESTION 38 Which of the following statements is FALSE? OA. The GDP of a country equals the value of final output produced within the borders of that country O B. The GNP of a country equals the value af final output produced using factors owned by residents of the country. OC GDP - net income received from abroad by residents of a nation + GNP O D.GDP represents the most commonly used measure of an…
QUESTION 11 Figure 10-11 83 42 36 24 15 0 Price 240 420 Supply (private cost) Social value (private value and external benefit) Demand (private value) Quantity Refer to Figure 10-11. Which of the following statements is correct? O a. The private value of the 420th unit of output is $15. O b. The social value of the 420th unit of output is $42. O c. The external benefit of the 420th unit of output is $27. O d. All of the above are correct.
This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand 200 500 650 Quantity a) Without any government intervention, what is the market determined price and quantity? b) What is the price of the externality? c) What is the socially optimal price and quantity? d) What should the government do (impose a tax or provide a subsidy) to internalize this externality? What is the amount of the the corrective tax/subsidy needed to be to move the outcome from the market equilibrium to the socially-optimal outcome?
Saved Help Save&Exit Submit Quantity Supplied Quantity Price Demanded $6 300 $1 10 250 $2 50 180 $3 90 150 $4 120 120 $5 150 90 $6 180 50 Refer to Table 6.1, which gives the daily supply and demand schedules for cups of coffee at a kiosk in a shopping mall. If there is no tax placed on coffee, how many cups of coffee will be bought and sold? Multiple Choice 50 90 Next T47 F 24 of 67 < Prev T0/20/20 o search lp qim

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS