Q: Why are corrective taxes preferred over regulations to deal with pollution? Select one: O a.…
A: When the state's information about control costs is insufficient, economists have traditionally held…
Q: b. Compare the buyers' marginal benefit and the seller's marginal cost at the firm's profit…
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Q: Which of the following statements about external costs is TRUE? A Economics uses the term "external…
A: Here's why the other options are incorrect:a) Incorrect: External costs can be significant and have…
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Q: The figure shown reflects the presence of Social Cost Private Cost P. Demand Quantity positive…
A: Externality refers to cost or benefit which occurs from production and falls on the third party who…
Q: uppose that elementary education creates a positive externality. If the government does not absidize…
A: Given that the elementary education creates the positive externality. If government Subsidizes the…
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Q: 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 b. subsidy = $3 Supply 25000 50000 75000 100000…
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Q: 24 20 PRICE (Dollars per unit) 2 16 co 100 Social Cost Supply Demand H 200 300 400 500 600 QUANTITY…
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A: The benefit or cost that is being caused by a producer that is neither being received nor incurred…
Q: Consider a good with negative externalities. Relative to the outcome of an unregulated market, a…
A: D) higher; lower
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Q: An externality exists when Othere are internal costs. O there are private costs. O there are…
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Q: Price (per pack) 11 10 9 8 3 2 1 0 2 4 6 8 10 12 14 16 18 20 Quantity (millions of packs per year)…
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Q: Which of the following is an example of environmental standards? O A. tradable pollution permits O…
A: Environmental standard refers to the law or regulation of the government to protect the environment…
Q: Question 14 The diagram below shows the marginal cost of abatement for each of two firms, A and B.…
A: An E(externality )is a cost that is not borne by the person who generated it. The externality can be…
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A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
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A: Answer- Need to find- Researchers have accurately estimated the marginal external cost created by…
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Q: Refer to Figure 10-2. The socially optimal quantity would be O a. Q3. O b. Q₁. C. Q4. d. Q2.
A: The socially optimal quantity is the level of output that maximizes social welfare (or total…
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Q: Time left 0:27:07 Suppose that flu shots create a positive externality equal to $12 per shot. What…
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Q: When allocating water, efficiency in the presence of competing uses implies: O Consideration of the…
A: * ANSWER :- *The OPTION D ( All or these reasons) is correct answer.
With liability laws , a polluter will not have any compensation cost if they do not cause any damage . Select one : O a . True O b . False
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- Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…Supply 10.00 9.00 8.00 7.00 6.00 MSC 5.00 4.00 Demand 3.00 2.00 1.00 25000 50000 75000 100000 125000 150000 175000 200000 If a tax or subsidy were used to correct the externality, what would be chosen? O a. tax = $4 O b. subsidy = $3 O C. tax = $3 O d. subsidy = $4 B.1) Which type of market failure does the following represent. a) Construction of a bowling alley in the center of a busy town. Choose one answer from list below. o Asymmetric information o Public good o Tragedy of commons o Positive externality o Adverse selection o Negative externality
- The government auctions off 500 units of pollut ionrights. They sell for $50 per unrt, raising total revenueof $25,000. This policy is equivalent to a correctivet ax of __ per unit of pollution.a. $10b. $50c . $450d. $500Assume that a state authorizes a local authority which regulates cable TV service in your neighborhood. This authority then grants an exclusive operating franchise to a cable TV company. Cable TV is excludible but non-rival in use. What kind of market failure is this? O A) A positive externality O B) A public good. OCA club good DI A negatiVe externalityurco Use the chart below to answer the following question. The Socially Optimal Quantity of Pollution Select one: O a. $83 O b. $250 O c. $500 O d. $167 Marginal social cost, marginal social benefit $500 250 167 0 MSC MSB 83 125 Quantity of pollution The chart above shows the marginal social cost (MSC) and marginal social benefit (MSB) of pollution. Using the information provided in the figure, we can conclude the optimal Pigouvian tax per unit of pollution is:
- O Macmillan Learning Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of approximately $150 per battery. Please shift the appropriate curve or curves to reflect this social cost. The new price is about $ The new quantity is Ithousand. Price (S) 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Supply Demand 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Quantity of Laptops (thousands)Time left 0:16:1 Suppose that elementary education creates a positive externality. If the government does not subsidize education, then Select one: the equilibrium quantity of education will be less than the socially optimal quantity of O a. education O b. the equilibrium quantity of education is optimal the equilibrium quantity of education will be greater than the socially optimal quantity of education C. Od. the equilibrium quantity of education will be equal to the socially optimal quantity of education Next page page r on this pageWhen Jennifer has her friends over, they always take from her roommates' food supplies and leave a mess in the common areas. This is an example of Select the correct answer below: O a positive externality a negative externality O breaking and entering public good
- If a paper manufacturer does not bear the entire cost of the dioxin it emits, it will Select one: emit a lower level of dioxin than is socially efficient. b. emit an acceptable level of dioxin. emit a higher level of dioxin than is socially efficient. a. C. O d. not emit any dioxin in an attempt to avoid paying the entire cost.An externality occurs whenever O private costs plus internal costs equal social costs. private costs diverge from social costs. O private costs are the same as internal costs. O private costs are the same as social costs.Suppose that a firm’s emissions and Marginal Abatement Cost (MAC) data are summarized in thetable below. e MAC 0 200 10 180 20 160 30 140 40 120 50 100 60 80 70 60 80 40 90 20 100 0 a. If the price of a pollution permit is $100, how many permits will the firm need? Explain.b. Suppose that the price of a pollution permit increases to $120, how many permits will thefirm need? Explain.c. With this new price of $120, will the firm’s emissions increase or decrease? By howmuch? Explain.d. Can the firm sell any permits? If so, what is the revenue generated from permit sales?Explain.
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