Süb noint(s) possible Next question The graph shows the marginal social cost and the marginal private cost of producing liquid fertilizer. Cost (dollars per ton) 1000- When the 2,000th ton of liquid fertilizer is produced in a week, what is the marginal external cost? 900- MSC 800- 700- em 600- When the 2,000th ton of liquid fertilizer is produced in a week, the marginal external cost is a ton. 500- MC A. $800 400- O B. $300 300- As O C. $200 200- O D. $500 100- SS 0- Quantity (thousands of tons per week) O O 0 O

Süb noint(s) possible Next question The graph shows the marginal social cost and the marginal private cost of producing liquid fertilizer. Cost (dollars per ton) 1000- When the 2,000th ton of liquid fertilizer is produced in a week, what is the marginal external cost? 900- MSC 800- 700- em 600- When the 2,000th ton of liquid fertilizer is produced in a week, the marginal external cost is a ton. 500- MC A. $800 400- O B. $300 300- As O C. $200 200- O D. $500 100- SS 0- Quantity (thousands of tons per week) O O 0 O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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↑ The figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. If property rights to the pasture are granted to a farmer so that the farmer owns the pasture, the farmer raises OA 0 goats OB. 40 goats OC. 50 goats OD. 55 goats 10 20 MSC MC MSB 40 50 80 Number of goos
Table: Coal Mine Pollution Quantity ofPollution(tons) MarginalSocialBenefit MarginalSocialCost 0 $800 $0 1 $700 $100 2 $600 $200 3 $500 $300 4 $400 $400 5 $300 $500 6 $200 $600 7 $100 $700 8 $0 $800 Reference: Ref 16-2 Table: Coal Mine Pollution (Table: Coal Mine Pollution) Use Table: Coal Mine Pollution. The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine. At the efficient quantity of pollution, the marginal social benefit of pollution is: Select one: a. $400. b. $300. c. $100. d. $200.
Macmillan Learning The accompanying graph depicts the marginal social cost (MSC) and marginal social benefit (MSB) of pollution emissions. Move the point, P, to the point representing the optimal level of pollution. What is the optimal quantity of pollution? metric tons The optimal quantity of pollution is not zero because: 1,000 Dollars 900 800 700 600 500 400 300 200 100 0 27 2 P 3 4 5 6 Metric tons of pollution 7 8 9 MSC MSB 10
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2 The market for education confers positive externalities on society. Which of the following is an example of a positive externality that it provides? Higher quality of public institutions like government and law Subsidies for providing education Higher salary for the person earning a degree More colleges and universities X OOOO W F2 3 16 80 F3 E 888 FA R DE F % V T MacBook Air 6 Y B & 7 H tv NA 2 N 8 K M 0 W Aa zoom 0
o Suppore : E (1,k) = metat for thois question.) has Ext. (Do not' wee fonction languan jian the ® Suppre the of, capital š price f laber is $3 and the price 2. Find, the aptimad imput combination ct, k*) to prefuce iš umits. What is the reralting minimized' cost? O Re do pant ☺ but this time, (3,2, or of, labor and the firm poodue s' y unita. Frmd the op timal C and kt solutione fumetine. Jon't use numbes we 5); we leave them open. Sugou tha price fw, Hhe price of capital is r fumitims of (w, riy). Te londi tional as Hhe factor druand © Find Hais fiym cost minimised cont depand funtion. (iHoo donr the (w,r;y)? O Follming pant 6, check of the condinl fautor Jemand fuie fien s (w,r). homay wns of degue o in O Following part (6), check is hompyeonan' of 'deguee 1 in '(w,r). the rost fawr ine
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Only typed answer
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…
500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire Price
Price $100 10 00 70 60 50 10 30 10 0 200 400 600 Select one: MSC A $6,000 8 $14,000. C$8,000. OD $16.000. pennan MPC e 000 1000 1200 1400 Quantity per persod Refer to the above graph to answer this question. If this product were taxed by an amount equal to the external costs, what would be the total amount of tax revenue? 27