To compare price and quantity in a competitive industry and green industry.

Question

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Answer 1

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

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Answer 2

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

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Answer 3

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

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Answer 4

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

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Answer 5

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 6

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 7

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Answer 8

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 12

Ch. 14.2 - Prob. 1.1GE Ch. 14.2 - Prob. 1.2GE Ch. 14.2 - Prob. 1.3GE Ch. 14.2 - Prob. 2.1GE Ch. 14.2 - Prob. 2.2GE Ch. 14.2 - Prob. 2.3GE Ch. 14.2 - Prob. 2.4GE Ch. 14 - Prob. 1SQP Ch. 14 - Prob. 2SQP Ch. 14 - Prob. 3SQP

To compare price and quantity in a competitive industry and green industry.

To compare price and quantity in a competitive industry and green industry.

Explanation of Solution

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Chapter 14 Solutions