READ all instructions carefully before you begin. Label your page/ document with: PART 1. Then, underneath Part 1: From the next slide, draw out and correctly label each graph; 4 pts each including instructions of 3b, 4, 5, 6, 7. Nothing on this slide should be missing or it’s (-4) on any graph which is not 100% complete. I would do these vertically, not side x side as shown to be sure I have enough room.Leave room above each graph and below each graph to add information. Instead of writing DWL, shade it in and label wth “Deadweight Loss’ outside of graph to the right or left (not top or bottom) with arrow to the wedge.Title above the graph: Specifically identify which type of externality the graph represents. 2 pts ea. = 8 pts. Below each x-axis, skip a line and write what the curve labels represent. Ex: MSC = _______ ______ _____For negative production externality: explain, what is the difference between MPC and MSC; what is factored into MSC?For positive consumption externality: explain, what is the difference between MPB and MSB; what is factored into MPB?

Here are the graphs depicting externalities, each accurately drawn and annotated as per the…

Answered: READ all instructions carefully before…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

From the next slide, draw out and correctly label each graph; 4 pts each including instructions of 3b, 4, 5, 6, 7. Nothing on this slide should be missing or it’s (-4) on any graph which is not 100% complete. I would do these vertically, not side x side as shown to be sure I have enough room.

Leave room above each graph and below each graph to add information.
Instead of writing DWL, shade it in and label wth “Deadweight Loss’ outside of graph to the right or left (not top or bottom) with arrow to the wedge.

Title above the graph: Specifically identify which type of externality the graph represents. 2 pts ea. = 8 pts.

Below each x-axis, skip a line and write what the curve labels represent. Ex: MSC = _______ ______ _____
For negative production externality: explain, what is the difference between MPC and MSC; what is factored into MSC?
For positive consumption externality: explain, what is the difference between MPB and MSB; what is factored into MPB?

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