The impact of different activities on society and also individual. Concept Introduction: Externality in Economics: In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity. Positive externality: Externality which creates benefit to the third party is positive externality. Negative externality: Externality which creates harm to the third party is negative externality or Private cost. Marginal Social benefit: The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service. Marginal Social cost : The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service. Marginal individual benefit: The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service. Marginal individual cost: The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service. Socially optimal level of output: The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Question

Want to see the full answer?

Answer 1

Question

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The projects under the 'Build, Build, Build' program: how these projects improve connectivity and ease of doing business in the Philippines?

how utillity relate to microeconomics ?

how opportunity coast relate to Economics ?

Answer 2

Question

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Answer 6

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Answer 7

Chapter 16, Problem 1P

To determine

The impact of different activities on society and also individual.

Concept Introduction:

Externality in Economics:

In economics, externality is a concept which discuss the consequence of an economic activity which can have a positive or a negative impact on the third party who is completely unrelated to the activity.

Positive externality:

Externality which creates benefit to the third party is positive externality.

Negative externality:

Externality which creates harm to the third party is negative externality or Private cost.

Marginal Social benefit:

The marginal social benefit is the change in total benefit to the society from the consumption of one extra unit of a good or service.

Marginal Social cost:

The marginal social cost is the change in total cost incurred by the society for the consumption of one extra unit of a good or service.

Marginal individual benefit:

The marginal individual benefit is the change in total benefit to an individual from the consumption of one extra unit of a good or service.

Marginal individual cost:

The marginal individual cost is the change in total cost incurred by an individual for the consumption of one extra unit of a good or service.

Socially optimal level of output:

The level of output at which marginal social benefit is exactly equal to marginal social cost is known as socially optimal level of output. If output is at some other point, market failure exists. It is also known as the allocative efficient level of output

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 16 - Prob. aWYWL Ch. 16 - Prob. bWYWL Ch. 16 - Prob. cWYWL Ch. 16 - Prob. dWYWL Ch. 16 - Prob. eWYWL Ch. 16 - Prob. 1QFT Ch. 16 - Prob. 2QFT Ch. 16 - Prob. 3QFT Ch. 16 - Prob. 1P Ch. 16 - Prob. 2P

Want to see the full answer?

Chapter 16 Solutions