The equilibrium quantity , price and marginal external cost generated without pollution control.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

16:10 ← BEC 3701 - Assignments-... KWAME NKRUMAH UNIVERSITY TEACHING FOR EXCELLENCE SCHOOL OF BUSINESS STUDIES DEPARTMENT OF ECONOMICS AND FINANCE ADVANCED MICRO-ECONOMICS (BEC 3701) Assignments INSTRUCTIONS: Check instructions below: LTE 1) Let u(q1,q2) = ln q₁ + q2 be the (direct) utility function, where q₁ and q2the two goods. Denote P₁ and P2 as the prices of those two goods and let M be per period money income. Derive each of the following: a) the ordinary or Marshallian demand functions q₁ = d₂ (P₁, P₂, M) for i = 1,2 [3 Marks] b) the compensated or Hicksian demand functions q₁ = h₂ (P₁, P2, M) for i = 1,2 [3 Marks] c) the Indirect Utility Function uº = v(P₁, P2, M) [3 Marks] d) the Expenditure Function E(P1, P2, U°) [3 Marks] e) Draw a diagram of the solution. There should be two graphs, one above the other; the first containing the indifference curves and budget constraint that characterize the solution to the consumer's choice problem; the second characterizing the demand…

How would you answer the question in the News Wire “Future Living Standards”? Why?

al Problems (v) T (ix) F 1. Out of total number of 2807 women, who were interviewed for employment in a textile factory, 912 were from textile areas and the rest from non-textile areas. Amongst the married women, who belonged to textile areas, 347 were having some work experience and 173 did not have work experience, while for non-textile areas the corresponding figures were 199 and 670 respectively. The total number of women having no experience was 1841 of whom 311 resided in textile areas. Of the total number of women, 1418 were unmarried and of these the number of women having experience in the textile and non-textile areas was 254 and 166 respectively. Tabulate the above information. [CA. (Foundation), May 2000 Exactly (14) of the total employees of a sugar mill were these were married and one-half

Answer 2

Question

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Answer 6

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Answer 7

Chapter 10, Problem 1SPPA

To determine

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.

Answer 8

Expert Solution & Answer

Answer to Problem 1SPPA

Without pollution control, equilibrium Output (Q_P) is 400, equilibrium Price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

An externality refers to the cost and benefits that the third-party bears and it has no control over it. However, externalities can be negative and positive. The externalities that cost to the third party are considered as negative externality while if it benefits the third party then it is considered as positive externalities.

The price, output, marginal private cost (MPC) and marginal external cost (MEC) schedules are given as follows:

Price (P)	Output (Q)	MPC	MEC	MSC
4	500	10	10	20
8	400	8	8	16
12	300	6	6	12
16	200	4	4	8
20	100	2	2	4
24	0	0	0	0

Without pollution control, the coal burning utility would take output and price decisions according to the following condition:

MB=MPC

Where

MB is marginal benefit,

MPC is marginal private cost.

The marginal benefit is equal to the output (demand). That is, coal burning utility would produce the output level where MB curve intersects MPC curve. Hence, without pollution control,

Equilibrium output (Q_P) is 400, equilibrium price (P_P) is 8 cents and marginal external cost (MEC) is 8 cents.

The diagram below shows the plot of marginal benefit/ demand (MB), marginal private cost (MPC) and marginal social cost (MSC) curve and the production under no pollution control (private optimum).

Foundations of Economics (8th Edition), Chapter 10, Problem 1SPPA

Answer 12

Economics Concept Introduction

Externalities:

Externality is the negative or positive effect of an action by an economic agent on another.

Marginal benefit:

Marginal benefit of an economic activity is the extra benefit received by undertaking an additional unit of that economic activity. It is also the demand curve.

Marginal cost:

Marginal cost of an economic activity is the extra cost incurred by undertaking an additional unit of that economic activity.

External cost:

When externality is negative, it is regarded as external cost.

Social cost:

Social cost is the sum of private cost and external cost.

Answer 13

Ch. 10 - Prob. 1SPPA Ch. 10 - Prob. 2SPPA Ch. 10 - Prob. 3SPPA Ch. 10 - Prob. 4SPPA Ch. 10 - Prob. 5SPPA Ch. 10 - Prob. 6SPPA Ch. 10 - Prob. 7SPPA Ch. 10 - Prob. 8SPPA Ch. 10 - Prob. 9SPPA Ch. 10 - Prob. 10SPPA

The equilibrium quantity , price and marginal external cost generated without pollution control.

To calculate: The equilibrium quantity, price and marginal external cost generated without pollution control.

Answer to Problem 1SPPA

Explanation of Solution

Want to see more full solutions like this?

Chapter 10 Solutions

To calculate:

The equilibrium quantity, price and marginal external cost generated without pollution control.