Question 7 In the presence of externality, market produces a good or service at the socially optimal level. true false No answer text provided. No answer text provided. Question 8 Market produces flu-vaccine at socially optimal level because vaccine is a private good as such if I take vaccine and remain healthy nobody in the world is benefited by that. True False No answer text provided. CNo answer text provided. Question 9 Market produces education at the socially optimal level True False No answer text provided. No answer text provided.

Question 7 In the presence of externality, market produces a good or service at the socially optimal level. true false No answer text provided. No answer text provided. Question 8 Market produces flu-vaccine at socially optimal level because vaccine is a private good as such if I take vaccine and remain healthy nobody in the world is benefited by that. True False No answer text provided. CNo answer text provided. Question 9 Market produces education at the socially optimal level True False No answer text provided. No answer text provided.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose demand is QD=9−P and supply is QS=P. There is a constant positive externality of $4 per unit (marginal external benefit, MEB = $4). Find the market equilibrium quantity and the socially optimal quantity. The market equilibrium quantity is enter your response here. (Round your answer to one decimal place.) The socially optimal quantity is enter your response here. (Round your answer to one decimal place.)
BND11.1 Why Do Externalities Cause Deadweight Loss?
two types of consumers( workers an retirees) share a community with a polluting cheese factory. the polution is nonrival and nonexcludable. the total damage to workers is p2 where p is the amount of pollution and the total damage to retirees is 3p2 . thus marginal damage to workers is 2p and marginal damage to retirees is 6p. according to an anlaysis by consulting engineers, the cheese factory saves 20p-p2 by pollluting p, for a marginal savings of 20-2p. a.Find the aggregate(including both types of sonsumers) marginal damage for the public bad. b..graph the marginal savings and aggregate marginal damage curves with pollution on the horizontal axis. c. how much will the cheese factory pollute in the abscence of any regulation or bargaining? what is the societys optimal level of pollution? d. starting from the uncontrolled level of pollution calculated in part(c), find the marginal willingness to pay for pollution abatment, A, for each consumer class. (abatment is the reduction in…
Externalities can not be positive. That is, there can be a third party cost associated with the production or consumption of a good or service, but there cannot be a benefit. A) True B) False
Consider an infectious disease such as the flu which is spread primarily through virus particles in aerosolized respiratory droplets of already infected people. a In the midst of an infectious disease epidemic of this sort, is it privately rational for people to limit their exposure to other people, perhaps by staying home from work or not going to school? b An infected person who goes out into public areas and does not take precautions to contain their respiratory emissions clearly poses a negative externality on those around them. Does an uninfected person going out into public areas also pose a negative externality? c For a particularly severe disease outbreak of this sort, one possible government response is to exaggerate to the public both the harm that might arise from contracting the disease and the likelihood of contracting the disease. In what ways might such a strategy reduce the harm to the public from the disease epidemic? In what ways might such a strategy increase the…
According to marginal analysis, in a market that experiences a positive externality, the market (private) players would ________________________ to the socially optimal output level. A. over-produce an output level relative B. under-produce an output level relative C. exactly produce an output level equal
The proposition that problems of externalities will be resolved efficiently through private exchange is known as Property rights Pollution abatement Coase theorem Tort law
Which of the following is an example of a negative externality (additional social cost)? Multiple Choice ___ an increase in the value of land you own when a nearby development is completed ___ the costs paid by a company to build an automated factory ___ falling property values in a neighborhood where a disreputable nightclub is operating ___ the higher price you pay when you buy a heavily advertised product.
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.
A market with negative externalities will tend to compared to a market producing the socially optimal output. O overproduce and sell at a lower price O overproduce and sell at a higher price underproduce and sell at a higher price O underproduce and sell at a lower price
Can you explain this for me? I got this wrong.
Consider the table. Number of street lamps Marginal benefit (in $) 123 4 5 6 7 30 26 22 18 14 10 6 Suppose that a small town wants to install street lamps, which are nonrival in consumption and nonexcludable. Each of the 25 people in the town value street lamps according to the given schedule. Street lamps each cost $250 to install. Use this information to answer the questions. What is the socially optimal number of street lamps? Suppose that 20 of the 25 townspeople decide that they will not help pay for street lamps, and will instead enjoy (for free) the street lamps built by the other five people. What is the maximum number of street lamps that will be built by the remaining five people? Suppose the town government decides to build street lamps and pay for the street lamps through taxation. How much should each person be taxed to pay for the optimal number of street lamps if everyone is taxed equally? S I street lamps street lamps