Principles of Microeconomics, California Edition
2nd Edition
ISBN: 9780393622102
Author: Dirk Mateer, Lee Coppock
Publisher: NORTON
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Question
Chapter 2, Problem 1SP
(a)
To determine
Calculate the
(b)
To determine
Calculate the
(c)
To determine
Specialization in production of artists.
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How does mining raw materials fir tech companies like apple affect the humar right violation all over the world
Consider the market for electricity. Suppose that a power plant dumps byproducts into a nearby river, creating a negative externality for those living
downstream from the plant. Producing additional electricity imposes a constant per-unit external cost of $490. The following graph shows the demand
(private value) curve and the supply (private cost) curve for electricity.
Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $490 per unit.
PRICE (Dollars per unit of electricity)
1400
1260
1120
980
840
700
560
420
280
140
°
D
1
2
3
D
Supply
(Private Cost)
Demand
(Private Value)
5
6
7
QUANTITY (Units of electricity)
Social Cost
The market equilibrium quantity is
units of electricity, but the socially optimal quantity of electricity production is
units.
To create an incentive for the firm to produce the socially optimal quantity of electricity, the government could impose a
unit of electricity.
per
How do mining of raw materials for a tech industry affects the human rights in the world
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Principles of Microeconomics, California Edition
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