Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 10, Problem 8SPPA
To determine
To compute:
The value of the voucher that will encourage the efficient number of students to enroll.
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Students have asked these similar questions
This graph shows the market for
antifreeze. Use it to answer the next
questions.
8
6.
1
100 200 300 400
500
600 700 800 900 1000 1100
Quantity
Question 8
The production of antifreeze creates
pollution. The pollution imposes a
cost of $2 per gallon on society.
What is the marginal social cost of
the 500th gallon of antifreeze?
Answer is a whole number; do not
include a dollar sign (e.g. 10).
Externalities
Do you think that there would be external effects associated with Water from a uranium mine leaking into Kakadu National Park? If so, what would be the nature of the external effects? Can you think of policies that might deal with each external effect (that is, improve social wellbeing)?
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
Chapter 10 Solutions
Foundations of Economics (8th Edition)
Ch. 10 - Prob. 1SPPACh. 10 - Prob. 2SPPACh. 10 - Prob. 3SPPACh. 10 - Prob. 4SPPACh. 10 - Prob. 5SPPACh. 10 - Prob. 6SPPACh. 10 - Prob. 7SPPACh. 10 - Prob. 8SPPACh. 10 - Prob. 9SPPACh. 10 - Prob. 10SPPA
Ch. 10 - Prob. 1IAPACh. 10 - Prob. 2IAPACh. 10 - Prob. 3IAPACh. 10 - Use the following information to work Problems 3...Ch. 10 - Prob. 5IAPACh. 10 - Prob. 6IAPACh. 10 - Prob. 7IAPACh. 10 - Prob. 8IAPACh. 10 - Prob. 9IAPACh. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQ
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