The graph shows the marginal private benefit from a law degree and the marginal cost of obtaining a law degree. The marginal external benefit is $16,000 per law graduate per year. What is the efficient number of students? If all law schools are private, how many students will enroll and what is the tuition? >>> Remember that the units on the axes are in thousands The efficient number of students is f government is not involved in educating lawyers, students enroll and tuition is a year Enter your answer in each of the answer boxes 56 45 40 32 24 16- $ Price and cost (thousands of dollars) S-MC D-MB 10 20 Students (thousands per year)

The graph shows the marginal private benefit from a law degree and the marginal cost of obtaining a law degree. The marginal external benefit is $16,000 per law graduate per year. What is the efficient number of students? If all law schools are private, how many students will enroll and what is the tuition? >>> Remember that the units on the axes are in thousands The efficient number of students is f government is not involved in educating lawyers, students enroll and tuition is a year Enter your answer in each of the answer boxes 56 45 40 32 24 16- $ Price and cost (thousands of dollars) S-MC D-MB 10 20 Students (thousands per year)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 5PA

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Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people who do not drink and drive. a. Illustrate the market for alcohol, labeling 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. b. On your graph, shade the area corresponding to the deadweight loss of the market equilibrium. (Hint: The deadweight loss occurs because some units of alcohol are consumed for which the social cost exceeds the social value.) Explain.
The graph shows the demand for university education. The marginal cost of educating a student is a constant $5,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are public, calculate the tuition that will achieve the efficient number of students. How much will taxpayers have to pay? COC Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that universities charge is $thousand per student. The amount paid by taxpayers is $thousand per student 1804 704 60 504 404 30 20 10 Price and cost (thousands of dollars per student per ye 00 DEMB 79 20 880 10 20 30 40 50 60 Students (thousands per year) >>> Draw only the objects specified in the question
B. The figure below shows the market for education. 20 S- MSC: 12 MSE D- MD 2 4 10 Quantity (millions of students per yeorl i. 'Education has externalities'. Explain this statement. ii. If the market is competitive and left unregulated, how many students will be enrolled per year? Are the resources allocated efficiently when such number of students are enrolled per year? Explain using the graph above. iii. In the figure above, what kind of government intervention is required to achieve the optimal or efficient number of students? What is the optimal number of students? How much intervention needed to achieve the optimal number of students? luian arc cost lihousa-cs of delan per stdent
What is the externality in the market for alcohol? Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves. Identify the market equilibrium quantity, the socially optimal quantity, and thedeadweight loss associated with the externality. What policies do governments use to try to eliminate the externality associated with drinking DRAW PICTURE PLUS STEP BY STEP HOW TO DRAW IT Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Why do externalities cause market failure? What types of government actions or regulations can be used to correct externalities? How do they work? What is an example of a negative externality and discuss how the government can fix it?
What is the concept of a negative externality in economics? A. A benefit received by individuals who did not incur the cost B. A cost incurred by individuals who did not receive the benefit C. A situation where external parties receive equal benefits and costs D. A situation where the government intervenes in the market
The graph shows the demand for design school education. The marginal cost of this education is a constant $4,000 per student per year and the marginal external benefit is a constant $3,000 per student per year If the government provides public design schools, what tuition will achieve the efficient number of students? How much will taxpayers have to pay? Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that colleges charge is $,000 per student. The amount paid by taxpayers is $ 000 per student. 14- 124 10- 84 64 4- 2-4 Price and cost (thousands of dollars) 20 MSB I D=MB 40 60 80 100 120 140 Students (thousands per year) Q Q ✔ (0,0) >>> Draw only the objects specified in the question.
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The following table shows how the marginal benefit of a service varies for five consumers. Quantity Serkan Asuman Bahar 1 150 125 100 200 600 Derive the demand curve for this service assuming 2 125 100 75 150 400 3 100 75 50 125 200 Murat Meriç that it is a public good. If marginal cost of the good is 850, what is the efficient output of the public good? If marginal cost of the good is 425, what is the efficient output of the public good? If marginal cost of the good is 850, what is the efficient output assuming it is private good?
ASAP plz Why don't people/stores make different decisions? Cost is a factor: a case of foam take-out containers costs $25, compared with $58 for paper and recyclable-plastics. How does this affect the firm's profit? Are consumers willing to pay more? Negative externality Consider the demand and supply given above. Suppose there is an external cost given by MEC=5Q. Find social equilibrium price and quantity. Draw a graph and label both private and social equilibrium.
The following data refers to the number of logging operations working in a stretch of tropical rainforest per week. Excluding externalities, the private cost of a logging operation is $25 thousand per week. Logs sell for $1 a piece. Fill in the chart below. # of operations total harvest average harvest average revenue marginal harvest marginal revenue marginal profit 0 0 1 40 2 75 3 105 4 130 5 150 6 165 7 175 8 180 What is the number of logging operations in the forest that maximizes total profit? How much total resource rent is generated at this level of harvest? With open access to the forest, how many folks will wind up logging? With open access, will there be any resource rent earned by the loggers? Suppose the total externalities associated with deforestation could be valued at $10,000 per operation. What is the efficient number of operators? What is the open…