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- Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…D Question 7 Noise generated by an airport best illustrates. market power. overproduction of private goods. an externality. an inequity.Industrial pollution is often cited as an example of a negative externality, but what about smoking? Most of you grew up in an era when smoking was much less socially acceptable than when your parents and grandparents were young. Both students and instructors used to smoke in the classroom and it was allowed was allowed in many college classrooms as late as the 1970s. Although few, if any, colleges allow smoking in classroom buildings now, many bars and restaurants have smoking sections. (a) would you be willing to pay smokers to not smoke while they are in the same restaurant or (b) would you choose to sit in a restaurant’s smoking section to avoid a longer wait for a table in a nonsmoking section. Discuss the cost of the externality to you and others.
- A market with positive externalities will tend to _____ compared to a market producing the socially optimal output. Select one: a. produce the optimal quantity. b. produce too few c. produce too many d. randomly produce some quantityPrice and cost (dollars per ton of steel) 250+ 200 150 100 50 2 MSC S = MC D=MSB 10 4 6 8 Quantity (tons of steel per week) 29) The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. There is a marginal external of A) cost; $100 B) benefit; $100 D) cost; $200 per ton. C) benefit; $200Exhibit 30-2 Price and Cost 0,0₂ b) ABE. Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private cost of expanding output from Q₁ to Q₂ is the area of a) Q₁CBQ2. Cuantity c) Q₁AEQ₂- d) Q₁ABQ₂.
- Cost and benefit (thousands of dollars per concert) MSC 100 80 60 40 20 0 5 A) 0. B) 5. (C) 10. D) 20. E) 15. 15 MC MB 10 20 25 Quantity (concerts per year) 39) The figure above illustrates the marginal private cost and the marginal social cost to the city of Halifax for each rock concert that is offered. It also illustrates the marginal private benefit. There is no external benefit. The efficient number of concerts in Halifax isWhen externalities cause markets to be inefficient (x) government action is sometimes needed to solve the problem. (y) private solutions can be developed to solve the problem. (z) there is a way to eliminate the problem of externalities in the market if producers are provided with the appropriate incentives to internalize the externality. Select one or more: a. (x), (y) and (z) b. (x) and (y) only c. (x) and (z) only d. (y) and (z) only e. (z) onlyWhich of the following instruments is government most likely to apply when confronted with a positive externality? (a) Subsidies. (b) Taxation. (c) Coase bargaining. (d) Usage fees.
- Can I get help asap please The figure below shows the market for a chemical, of which the production causes certain negative externalities in the form of pollution. Define MCP = marginal private cost, MCS = marginal social cost, D = market demand, P = price, and Q = quantity.(a) If the market is competitive, what is the equilibrium price and quantity?(b) Is this equilibrium outcome socially optimal?(c) In terms of the areas denoted by A, B, and C, what is the deadweight loss to society if the market is competitive?(d) What can the government do to achieve the socially optimal level of pollution?3. A local drama company proposes a new neighbourhood theatre in Vancouver. Before approving the building permit, the city planner completes a study of the theatre's impact on the surrounding community. a. One finding of the study is that theatres attract traffic, which adversely affects the community. The city planner estimates that the cost to the community from the extra traffic is $5 per ticket. What kind of an externality is this? Why? (2 marks) b. Graph the market for theatre tickets, labelling the demand curve, the social- value curve, the supply curve, the social-cost curve, the market equilibrium level of output, and the efficient level of output. Also show the per-unit amount of the externality. (4 marks) c. On further review, the city planner uncovers a second externality. Rehearsals for the plays tend to run until late at night, with actors, stagehands, and other theatre members coming and going at various hours. The planner has found that the increased foot traffic…
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