Please mark all correct statements In cost benefit analysis various levels of public good is considered. The one with greatest net benefit (benefit less costs) is the optimal one. Market demand for private good is obtained by horizontal addition. Given price, B everyones' quantities they are willing to buy is added up. Demand for public good is obtained by vertical addition. Given quantity, everyones price C) they are willing to pay is added up D) The right quantity of public good is when marginal benefits equal marginal goods. E Market demand is obtained by vertical addition, public good demand by horizontal

Please mark all correct statements In cost benefit analysis various levels of public good is considered. The one with greatest net benefit (benefit less costs) is the optimal one. Market demand for private good is obtained by horizontal addition. Given price, B everyones' quantities they are willing to buy is added up. Demand for public good is obtained by vertical addition. Given quantity, everyones price C) they are willing to pay is added up D) The right quantity of public good is when marginal benefits equal marginal goods. E Market demand is obtained by vertical addition, public good demand by horizontal

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 7PA

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This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand 200 500 650 Quantity a) Without any government intervention, what is the market determined price and quantity? b) What is the price of the externality? c) What is the socially optimal price and quantity? d) What should the government do (impose a tax or provide a subsidy) to internalize this externality? What is the amount of the the corrective tax/subsidy needed to be to move the outcome from the market equilibrium to the socially-optimal outcome?
Refer to Figure. The graph represents a market in which 24 22 22 Price 18 16 81 Social cost (private cost and external cost) Supply (private cost) Demand (private valne) 120 160 Quantity a. Othere is no externality. b. Othere is a positive externality. c. Othere is a negative externality. d. The answer cannot be determined from inspection of the graph.
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QUESTION 9 Which of the following can be concluded from the information presented in the graph? PRICE OF EDUCATION Il only only III and II I OI and III Marginal Social Cost 0200 Marginal Social Benefit Marginal Private Benefit 1. Consumption of education has a positive externality. II. Quantity of education consumed in a private market is less than the socially optimal amount. III. Producers of education should be taxed. O I only QUANTITY OF EDUCATION
Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…
Price Ssocial Sinternal $7.00 $6.00 $5.00 D $4.00 Dinternal 3,000 3,500 Quantity externality. In the market shown in the diagram above, there is a Select one: a. negative production b. negative consumption c. positive production d. positive consumption
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In economic term, COVID-19 vaccinations provide A. negative externality B. positive externality C. sunk costs D. waste
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QUESTION 6 Figure 10-3 PRICE 000 22222S 20 18 16 14 10 8 6 4 Social Value Demand, 246 8 10 12 14 16 18 20 QUANTITY Refer to Figure 10-3. If the government wanted to tax or Iubsidize this good to achieve the socially optimal level of output, it would a introduce a subsidy of $2 per unit. Supply b. impose a tax of $2 per unit. c. introduce a subsidy of $4 per unit. d, impose a tax of $4 per unit.
A Moving to another question will save this response. Question 3 $20 15 10 1,200 1,500 1,800 2,400 Refer to the figure. The figure represents the market for Covid vaccines with external benefits. The external of vaccination is benefit; $5 cost; $10 benefit; $20 cost; $15 A Moving to another question will save this response. * O O OO