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The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle of a residential area in a particular town. Ticket prices are measured in dollars (the grid is drawn for $2.50 increments) and ticket quantities are measured in thousands. The locals are not happy about the increased traffic congestion and noise that accompany each concert. Note that supply curve S, represents the marginal private cost of the concerts. What is the cost of the externality per concert ticket? The cost of the externality is $ per concert ticket sold. (Round to the nearest cent as needed.) $50- $45 $40 $35 $30-$27.50 P $25- $20 $2005 $15 $10 $5 50 S S 19 12 10 15 G of Tickets (Thousands)

The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle of a residential area in a particular town. Ticket prices are measured in dollars (the grid is drawn for $2.50 increments) and ticket quantities are measured in thousands. The locals are not happy about the increased traffic congestion and noise that accompany each concert. Note that supply curve S, represents the marginal private cost of the concerts. What is the cost of the externality per concert ticket? The cost of the externality is $ per concert ticket sold. (Round to the nearest cent as needed.) $50- $45 $40 $35 $30-$27.50 P $25- $20 $2005 $15 $10 $5 50 S S 19 12 10 15 G of Tickets (Thousands)

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 10CQ
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K The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle of a residential area in a particular town. Ticket prices are measured in dollars (the grid is drawn for $2.50 increments) and ticket quantities are measured in thousands. The locals are not happy about the increased traffic congestion and noise that accompany each concert. Note that supply curve S, represents the marginal private cost of the concerts. What is the cost of the externality per concert ticket? The cost of the externality is $ per concert ticket sold. (Round to the nearest cent as needed.) $55 $50 $45 $40 $35 $30-$27.50 $25- $20 $15 $10 $5 $0 P 0 $20.00 12 $₂ 3₁ 10 15 a of Tickets (Thousands)
Transcribed Image Text:K The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle of a residential area in a particular town. Ticket prices are measured in dollars (the grid is drawn for $2.50 increments) and ticket quantities are measured in thousands. The locals are not happy about the increased traffic congestion and noise that accompany each concert. Note that supply curve S, represents the marginal private cost of the concerts. What is the cost of the externality per concert ticket? The cost of the externality is $ per concert ticket sold. (Round to the nearest cent as needed.) $55 $50 $45 $40 $35 $30-$27.50 $25- $20 $15 $10 $5 $0 P 0 $20.00 12 $₂ 3₁ 10 15 a of Tickets (Thousands)
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