K100100100100100100100100100p=0.1d.p=18887868584820ALB0COCHG+DⒸd. C+H+K5101520253035Suppose you are given some information on a firm's production costs in Table 1, where Kis the firm's capital, Lis labor (number of workers and is the output level. For which of the following price is itcertain that the firm will make a positive profit in the long run? (There may be more than one correct answer!ap-10b.p-240FC100100100JOb.+G+D+E+H+K100100100100100100KDEHvc060 90154575001051209020110120125128129New SupplySupplyThe figure above represents a market before and after government intervention. New Supply represents the supply curve after the policy is imposed.DemandWhat area represents government revenue/expenditure after the policy is imposen?O4E+H 210"40"What kind of externality is present in this market?O a. A negative consumption externality of x-10.Ob. A positive consumption externality of x = 20.Oc. A positive consumption externality of x = 10.Od. A negative consumption externality of x-20.#1•Supply(P-40+Q₂)10 "Demand (P-200-QSocial Marginal BenefitP-20-9.2009210QSuppose the government imposas a policy (tax or subsidy) such that the new Supply curve lies on the Social Marginal Cost curve. What area represents the government revenue or expenditure from thispolicy?Ⓒa.DIGHOb. E-HⒸI+G+D+E+H+KⒸd.E+HIK

Since multiple independent McQs are posted, according to the guidelines, the first McQ is answered.…

Supply (P-Q) Sotal Maral Demand (P-200-Q) P-e-Q Q What kind of externality is present in this market? Oa. A negative consumption externality of x-10. Ob. A positive consumption externality of x = 20. Oc. A positive consumption externality of x-10. Od. A negative consumption externality of x-20.

Supply (P-Q) Sotal Maral Demand (P-200-Q) P-e-Q Q What kind of externality is present in this market? Oa. A negative consumption externality of x-10. Ob. A positive consumption externality of x = 20. Oc. A positive consumption externality of x-10. Od. A negative consumption externality of x-20.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 9PA

See similar textbooks

Similar questions

20 110 Supply 06 08 70- Demand 09 45 40 30- %3D 20 10 20 30 40 SO 60 70 80 90 100 10 120 130 140 150 160 170 Quaxtity Refer to the above figure. At the equilibrium price, total surplus is O $2,500. O $1,000. O $3,500. O $7,000. « Previous No new data to save. Las MacBook Pr
7. Demand and supply curves for products when there are negative or positive externalities. Quantity (A) Quantity (B) Quantity (C) On this graph above which one indicates the effect after the government subsidizes the producer because there are positive externalities from this product? (A. B. C ). On this graph above which one indicates the effect after the government subsidizes consumers for this product which has a positive externality? CA. B, C ). On this graph above which one indicates the effect after the producer was prevented from causing a negative externality or was forced to pay a tax to cover these costs? (A. B, C).
00 R #3 w/ 20 Price 10- 100- 06 08 70. Demand 09 -+ 05 45 -4- 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Buaxtity Refer to the above figure. At the equilibrium price, consumer surplus is O $1,000. O $2,000. O $3,500. O $500. MacBook Pro esc %23 24 2 4. 51 A S. H.
0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 50 100 150 200 250 300 What kind of externality is in the market above? O a. negative production externality O b. positive consumption externality O c. negative consumption externality O d. positive production externality Demand 350 Supply MSB 400
5. An economy has two industries: services and manufacturing. To produce $1 of services requires 20¢ of services and 40¢ of manufacturing. To produce $1 of manufacturing requires 30c of services and 10¢ of manufacturing. (a) If there is an external demand for $900 of services and $1500 of manufacturing, how much of each industry should be produced to meet it? (b) Find the internal consumption when demand is met. (c) Which industries, if any, are profitable.
00 - Principles of Economics 1| S1 21 Which of the following leads to the producers paying the larger share of a tax? Select one: O a. demand is elastic O b. supply is elastic Oc the tax is placed on the buyer O d. the price is higher O e. the tax is placed on the seller
(a) Jill's Demand $8 Jill's demand. 10 Quantity 15 (b) Joe's Demand O A. The construction of market demand for an excludable good. O B. The construction of market demand for a private good. O C. The construction of market demand for a public good. O D. The construction of market demand for a rival good. $10 Refer to the graphs above. What procedure does this series of graphs show? :10 Joe's demand Quantity 15 (c) Market Demand $18 Market demand 10 Quantity 15
4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Permit System Public Policy The government limits total carbon-dioxide emissions by all factories to 260,000 tons per five years. Each individual factory is given the right to emit 230 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $440 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. The government charges…
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. O Efficient use of housing space results. O The quantity of available rental housing units falls. O The quality of rental housing units falls. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
1 . Problems and Applications Q4 A company is considering building a bridge across a river. The bridge would cost $350,000 to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 4.00 0 3.50 40 3.00 80 2.50 120 2.00 160 1.50 200 1.00 240 0.50 280 0 320 If the company were to build the bridge, its profit-maximizing price would be , and itwould not produce the efficient level of output. If the company is interested in maximizing profit, itshould not build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of . True or False: The government should build the bridge.
6. Climate change and externalities. How is the issue of climate change related to the concept of externalities? What is the externality? What are the relevant markets? b. Provide an example of a market that features this externality. Assuming there is no intervention to correct for the externality, compare the market allocation to the efficient allocation. Does the market produce too much? Too little? Is the market outcome efficient? а. c. What is the relationship between the marginal private cost of production in this market and the marginal social cost? Explain. d. Suppose you wanted to come up with an estimate of the magnitude of the marginal external cost (in dollars). What would this number represent? What sort of information would you need to determine this number?
A Moving to another question will save this response. Question 7 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 50 100 150 200 250 300 Demand What kind of externality is in the market above? Oa. negative consumption externality Ob. positive production externality Oc. negative production externality O d. positive consumption externality 350 Supply MSB 400