of 20Question 19 of 20 >Submit AllSpecialized electronic batteries, such as those for laptops, arehard to dispose of safely, yielding excess pollution when onegets thrown away. Suppose that producing these batteriesMarket for Laptop Batteries1,000950900850creates an external cost of $150 per unit. The accompanyingdiagram depicts the market for these batteries in which theseSupplyexternal costs are not internalized. Please adjust the008750700650600appropriate curves to represent the market if the external costsare internalized.550500450400350300250200150100Demand500.1,000 2,0003,000 4.000 5,000 6,000 7,000 8,000Quantity Vate WindowsGo to Settings to activate Windows85%Q市市市山合电后中11/2HDMLAPTOP LOGINHIGH-DEFINITION MULTIMEDIA INTEacerUSERNAME: studentPrice

Internal costs are expenses incurred by a business or organization that are directly related to its operations or production processes. These costs can include salaries and wages of employees, rent, utilities, raw materials, and equipment maintenance. On the other hand, external costs are expenses that are not directly related to a company's operations or production processes, but instead, are borne by society or the environment. These costs are often referred to as externalities and can include things like pollution, resource depletion, and negative health effects. External costs are not factored into the price of goods and services, which can result in market inefficiencies and environmental degradation. To internalize the external cost of producing specialized electronic batteries, a tax or fee can be imposed on each unit produced. In this case, the internal cost is equal to $150 per unit. By imposing the tax rate of $150 per unit, the supply curve will shift in an upward direction by $150 per unit, as producers will now have to bear the cost of the externalities they create. The diagram below represents the market for specialized electronic batteries with the internalized external costs. In the diagram, the horizontal axis represents quantity, and the vertical axis represents price. The initial equilibrium point E represents the intersection of demand curve D with supply curve S without internalizing the external cost, where the equilibrium quantity is Q1 and the equilibrium price is P1. However, after internalizing the cost by imposing a tax, the supply curve would shift in an upward direction from S to S', where the new market equilibrium price is P2, and the new equilibrium quantity is Q2.The internalization of the cost of $150 will shift the supply curve in an upward direction from S to S'.

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Question 19 of 20 <> Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates an external cost of $150 per unit. The accompanying 1,000 950 diagram depicts the market for these batteries in which these 900 850 external costs are not internalized. Please adjust the 800 750 appropriate curves to represent the market if the external costs 700 are internalized. 650 600 550 500 rice

Question 19 of 20 <> Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates an external cost of $150 per unit. The accompanying 1,000 950 diagram depicts the market for these batteries in which these 900 850 external costs are not internalized. Please adjust the 800 750 appropriate curves to represent the market if the external costs 700 are internalized. 650 600 550 500 rice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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