Use the following diagram, which depicts a typical market with a positive externality, to answer questions 20.) and 21.) A D: F G M ES K Ext. 20.) What is the value of consumer surplus if the market operates perfectly competitively without any government intervention? a.) А+В b.) C+D с.) Е+F d.) G+K 21.)What is the value of the deadweight loss if the market operates perfectly competitively without any government intervention? а.) А+В b.) C+D с.) Е+F d.) G+K

Use the following diagram, which depicts a typical market with a positive externality, to answer questions 20.) and 21.) A D: F G M ES K Ext. 20.) What is the value of consumer surplus if the market operates perfectly competitively without any government intervention? a.) А+В b.) C+D с.) Е+F d.) G+K 21.)What is the value of the deadweight loss if the market operates perfectly competitively without any government intervention? а.) А+В b.) C+D с.) Е+F d.) G+K

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2) Name two types of market failure. Explain why each may cause market outcomes to be inefficient.
Viral infections such as flu are highly contagious. The number of infections and thus the spread of the disease can be prevented by getting vaccinated. However, the decision to take vaccine is voluntary and some people choose not to go for it for various reasons.] [What type of externality occurs by getting vaccinated against contagious diseases? Explain your answer in 100 words or less. [In a diagram, show the market equilibrium quantity of the vaccine. Is the quantity also socially efficient? Explain in 100 words or less and demonstrate using the same diagram. [Suggest one method to achieve a socially efficient outcome. Explain your answer in 100 or less words.
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The Chief Medical Officer has advised the government that consumption of widget-corn improves the survival rate of COVID-19 by 20%. Suppose the supply and demand functions for widget-corn are:QD = 100 – 5P (1)QS = 5P. (2)P is the price in dollar and Q is the quantity in kilograms.a. Determine the market equilibrium price and quantity of widget-corn? Calculate the consumer surplus, producer surplus, and total economic surplus at the market equilibrium. Having confirmed the positive impact of widget-corn consumption on COVID-19 patients, the government has ordered widget-corn sellers to charge $5 per kilogram.(i) What type of price regulation policy is this? Briefly explain. (ii) Calculate the impact of the policy on the quantity of widget-corn supplied and demanded. (iii) Explain the impact of the policy consumer surplus, producer surplus, and total economic surplus. (iv) Is the outcome of the government’s policy efficient and, therefore, maintained or abandoned? Explain in detail. d.…
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Only typed answer and please don't use chatgpt The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q. 1A. How many leather is produced in the free market if the externality is not corrected. B) What is the free market price of the leather if the externality is not corrected? C) What is the social marginal cost?