5.6.7.8.The Coase theorem will apply only ifA. the courts can be used to determine the amount of compensation that mustbe made to the damaged party.B. the amount of compensation that must be made to the damaged party issmall.C. the number of people involved is small.D. an individual who is not affected by the externality can negotiate a settlementbetween the parties imposing the externality and the parties that are harmedby the externality.Public goods areA. rival; excludableB. nonrival; excludableC. nonrival; nonexcludableD. rival; nonexcludablePublic goods represent a market failure becauseA. they are provided by firms with market power.B. positive externalities are created through their production.C. by their very nature they are nonexcludable and nonrival which makes itdifficult for the private sector to supply them profitably.in consumption and their benefits areD. there is incomplete information regarding their quality.The Wax Works sells 500 candles at a price of $5 per candle. The Wax Works'total economic costs for producing 500 candles are $3,000. The Wax Workseconomic profit isA. -$3,000.B. -$500.C. $2,500.D. $3000

The Coase theorem will apply only if A. the courts can be used to determine the amount of compensation that must be made to the damaged party. B. the amount of compensation that must be made to the damaged party is small. C. the number of people involved is small D. an individual who is not affected by the externality can negotiate a settlement between the parties imposing the externality and the parties that are harmed by the externality.

The Coase theorem will apply only if A. the courts can be used to determine the amount of compensation that must be made to the damaged party. B. the amount of compensation that must be made to the damaged party is small. C. the number of people involved is small D. an individual who is not affected by the externality can negotiate a settlement between the parties imposing the externality and the parties that are harmed by the externality.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following is an example of an activity generating a positive externality? O A. You buy a new car and then find $5,000 in the door panel. OB. Your next-door neighbor mows the lawn at 6 am. C. Your next-door neighbor installs a bat house and the bats eat mosquitoes. D. After Joe buys health insurance, he decides to quit smoking.
A neighborhood homeowners' association charges a fee when residents make loud noise from 9 p.m. until 7 a.m. This is similar to using _____ to reduce externalities from noise. Select one: a. command and control regulations treat everyone the same regardless of circumstances. b. a corrective tax to reduce a negative externality c. cap and trade to increase a positive externality d. a government subsidy to reduce a price floor
Which of the following is an exampleof a negative externality? A. Abeekeeper selling honey at a farmers'market B. A factory emittingpollutants into the air C. A restaurantoffering a discount to senior citizensD. A farmer using organic farmingmethods.
#8. A party ends up spreading the coronavirus. Is that an externality? a. Yes, it is a negative externality b. Yes, it is a positive externality c. No, it is not an externality
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 quantity
Spillovers or externalities: a. have been legislated out of existence. b. relate to both costs and benefits. c. None of the Above d. relate to benefits only. e. relate to costs only.
A. Figure 10-8 (above)- For the described positive externality, what is the market quantity without any efforts to correct the market? B. For a positive externality, briefly explain why and how the government may get involved in the market. In your response, provide an example (type of product or service).
Externalities can be ________ by collective (i.e.) ________ action. a. enhanced // market b. internalized // market c. internalized // government d. externalized // government
Suppose you are the party who can avoid a particular external effect at the lowest cost. You might favor a general rule that assigns liability to whichever party can avoid damage at the lowest cost because the general rule implies that other parties multiple choice a. would not likely eliminate their externalities. b. would also eliminate their externalities. c. parties may or may not eliminate their externalities. d. would pay you to eliminate their externalities. I know the answer is not a. or c. it has to be either d or b
Graphically, the effects of an external benefit can be shown as A. a leftward shift of the market demand curve. B. a leftward shift of the market supply curve. C. a downward movement along the market demand curve. D. a rightward shift of the market demand curve.
When 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) only
Suppose the hot sauce firm cannot reduce the externality without reducing costs. What is a possible next step the government could take to reduce it? Select all that apply. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Tax the firm for each bottle of hot sauce produced. a b C d e Create a limit on the maximum number of bottles the firm can make. Subsidizing each bottle of hot sauce made. Not allowing consumers to buy hot sauce. Forcing the firm to install equipment to reduce the amount of pollution generated. Answered Incorrect 1 attempt left Resubmit