Give typing answer with explanation and conclusion Scenario 1: In the market for automobiles, the private cost of one compact car is $20,000 and the social cost of one compact car is $30,000.Would a tax or a subsidy be more appropriate for this externality?O a. TaxO b. SubsidyOc. Neither0Scen$11/W$1MTheIONb.ExternalC. NeitherSTION 4O c. anO d. a privateefitre good idea is $100MHUUBES, San external benefit?ur neighbor might experience heworld for the better, the private benefit ofar is $20,000 and the social cost of one compact-tend to stay away from neighborhoods that have a lot of burglar alarms is

Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Scenario 1: In the market for automobiles, the private cost of one compact car is $20,000 and the social cost of one compact car is $30,000. Would a tax or a subsidy be more appropriate for this externality? O a. Tax O b. Subsidy Oc. Neither

Scenario 1: In the market for automobiles, the private cost of one compact car is $20,000 and the social cost of one compact car is $30,000. Would a tax or a subsidy be more appropriate for this externality? O a. Tax O b. Subsidy Oc. Neither

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Give typing answer with explanation and conclusion

Scenario 1: In the market for automobiles, the private cost of one compact car is $20,000 and the social cost of one compact car is $30,000.
Would a tax or a subsidy be more appropriate for this externality?
O a. Tax
O b. Subsidy
Oc. Neither
0
Scen
$11/
W
$1M
The
ION
b.External
C. Neither
STION 4
O c. an
O d. a private
efit
re good idea is $100M
HUUBES, S
an external benefit?
ur neighbor might experience he
world for the better, the private benefit of
ar is $20,000 and the social cost of one compact-
tend to stay away from neighborhoods that have a lot of burglar alarms is

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