The graph shows the marginal private benefit from trade school education. The marginal - cost of this education is a constant $12,000 a year and the marginal external benefit is $8,000 per student per year. Draw the marginal social benefit curve. Label it MSB. Draw a point at the efficient outcome. Label it 1. The efficient number of students is >>> Remember that the quantity given on the x-axis is in thousands of students. Suppose trade schools are private (no government involvement). Draw a point at the private market outcome. Label it 2.. If trade schools are private, people undertake a trade school education and tuition is $a year. >>> Remember that the quantity given on the x-axis is in thousands of students and the price on the y-axis is in thousands of dollars. If there is no goverment involvement, calculate the deadweight loss to society. DWL=5 Draw a shape to shade the deadweight loss area on the graph. Price and cost (thousands of dollars) 324 28- 24- 20 164 12 ddu 8- 4-4 0- S MC DEMB 0 20 40 60 80 100 120 140 Students (thousands per year) >>> Draw only the objects specified in the question. Next

The graph shows the marginal private benefit from trade school education. The marginal - cost of this education is a constant $12,000 a year and the marginal external benefit is $8,000 per student per year. Draw the marginal social benefit curve. Label it MSB. Draw a point at the efficient outcome. Label it 1. The efficient number of students is >>> Remember that the quantity given on the x-axis is in thousands of students. Suppose trade schools are private (no government involvement). Draw a point at the private market outcome. Label it 2.. If trade schools are private, people undertake a trade school education and tuition is $a year. >>> Remember that the quantity given on the x-axis is in thousands of students and the price on the y-axis is in thousands of dollars. If there is no goverment involvement, calculate the deadweight loss to society. DWL=5 Draw a shape to shade the deadweight loss area on the graph. Price and cost (thousands of dollars) 324 28- 24- 20 164 12 ddu 8- 4-4 0- S MC DEMB 0 20 40 60 80 100 120 140 Students (thousands per year) >>> Draw only the objects specified in the question. Next

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

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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Consider the network effects of delivery service by drones in Rwanda. Identify the best example of a positive external benefit generated as new customers use the drone delivery service. As demand increases for delivery service by drones, a.a wider variety of products may be delivered by drone. b.highways may be built to service remote locations. c.social networks may also grow in popularity in Rwanda. d.goods may be damaged during delivery.
Problem 1: Externality The weekly supply and demand for packs of cigarettes in the United States is given in the figure below. Suppose cigarette smoking causes an external cost on nonsmokers, as shown by the social benefit curve on the graph. Price ($) 36 34 32 30 - 28 26 - 24 22 - EMC S SEMC pvt 20 - 18- 16 - 14 - 12 - 10- 8 MB pvt social 2 MB 10 12 14 16 18 20 22 24 26 28 30 32 Pack of cigarettes (millions) a. This is a [ Select ] [ Select ] externality.
how do you read this type of graph and know whats going on
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.
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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
Answer the attached 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
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Suppose Scott and Bob live on the same street. in the winter, both of them like their street plowed. Bob's demand is given by 0 = 40 - P, and Scott's demand is gren by 0 = 30 - 2P. Suppose the marginal cost of plowing the snow is constant at $35 (a) What is the social marginal benefit curve? (b) What is the socially efficient amount of plowing? (c) What would be the socially efficient amount of plowing if the marginal cost of plowing were $5?