Suppose there are one hundred residents in a neighborhood, and each resident has an identical demand for a public good. The demand for each resident is given by P = 2 - .01Q. If your answer is not a whole number, please make sure to round to the nearest hundredth. Refer to Scenario 3. What is the socially optimal number of the public good if the marginal cost of producing them is $100, $5 and $300?

Q: There are two workers. Each worker’s demand for a public good is P = 20 − Q. The marginal cost of…

A: Step 1: Number of workers = 2 Demand for public good: P=20-Q MC of public good: MC=$24 In case of…

Q: Suppose the market demand for a good takes the form: 1 QD = 120 4 - P and market supply takes the…

A: Given, Qd = 120-14PQs = -30 + 12P external value = 50%

Q: Refer to the diagrams below in which figures (a) and (b) show demand curves reflecting the prices…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Consider the market for charcoal briquettes in a small neighborhood. Neighborhoods residents buy…

A: Answer Example of a command and control policy the neighborhood government could use to implement…

Q: Find the social demand curve for clean streets in this neighborhood. What is the slope of the social…

A: First, find the inverse demand function for both Tana and Jason. Inverse demand function of Tana is…

Q: Suppose that it costs 500 per day to search for chanterelle mushrooms at Pt.Reyes National…

A: The total weight of mushrooms is as follows: M=100x-x2, M represents total weight and x represents…

Q: Consider the following supply and demand curves for buying shrimps. Shrimps produce positive…

A: The socially efficient output level is the quantity when the sum of producer surplus and consumer…

Q: The demand for clean streets in a neighborhood is Q = 125 – P. For each of the following questions,…

A: The demand for the cleans streets in a neighbourhood: Q = 125-P or P = 125 – Q Where P is the price…

Q: The inverse demand for energy-efficient refrigerators is P = 2,000 – 10Q, where Q measures…

A: The marginal external benefit is added to marginal private benefit to get marginal social benefit.…

Q: Suppose the government assigns property rights to the airlines; that is, airlines have the right to…

A: No one is hurt by market activity, and the market performs at its best when there are no…

Q: Suppose the government has determined that the socially optimal quantity of sulfur dioxide emissions…

A: As mentioned socially equilibrium output is 140 million tons which are equal to $27 per ton.

Q: The private marginal benefit associated with a product’s consumption is PMB = 360 – 4Q and the…

A: Firstly, we will find Social Optimum Quantity(the value of Q) For Social Optimum Quantity, PMB =…

Q: 1.) Consider the market for plastic grocery store bags. Suppose that demand for these bags is given…

A:

Q: Private markets fail to reach a socially optimal level when positive externalities are present…

A: There are two types of externalities: positive and negative externalities.  Positive externalities…

Q: Answer the question based on the following information for a public good. Pa and Ph are the prices…

A: Private good refers to those goods which are excludable and rival. Rival means consumption of one…

Q: Answer the question based on the following information for a public good. Pa and Pb are the prices…

A: Willingness to pay for last unit consumed is referred as the marginal willingness to pay which is…

Q: Suppose there are two residents in a neighborhood, Tana and Jason. Tana's demand for clean streets…

A: Tana's Demand Function: Q = 100 – 4P P = 25-Q/4 Jason's demand Function: Q = 80 – 2P P = 40-Q/2

Q: Suppose there are three individuals living in a community. Their demands for a public good are…

A: A public good is a good that is nonrival and nonexcludable. Nonrival implies that the consumption of…

Q: Which of the following is not true for a public good?

A: Public goods are the goods with characteristics like non rival and non-excludable.

Q: How can a society reach a socially efficient equilibrium basing it on the Coase Theorem if a vaccine…

A: Coase theorem – the theory was developed by Ronald Coase, it states that under perfect competition…

Q: Suppose the government has determined that the socially optimal quantity of chemical pollution is…

A: The curve that depicts various quantities of goods and services being demanded by customers at…

Q: Answer the question based on the following information for a public good. Pa and Pb are the prices…

A: Optimal quantity is the most effective quantity to purchase goods and services at a specific time.

Q: Refer to the above table and answer the question on the basis of the given information for a public…

A: The optimal quantity of public goods is, when           Marginal Cost of Public Goods = Marginal…

Q: Consider the market for flu vaccines, in which consumption causes positive externalities by creating…

A: Supply curve : Qs = 2 + 2P  Private Benefit Curve : Qd = 60.5 - 2.5 MBP Social Benefit Curve : Qd =…

Q: Suppose the government has determined that the socially optimal quantity of sulfur dioxide emissions…

A: a) Here the government can charge tax on per unit emission of $35 per ton of sulfur dioxide emitted…

Q: Suppose the equation for the demand curve in a market is P-100-1.5Qp, where Qn is the quantity…

A:

Q: In the analysis of the optimal level of a public good, suppose that each person's utility function…

A: Given information Utility function is quasi linear U=Ui(G)+Pi G is the public good Pi= private good…

Q: The figure below shows the market for higher education. The market demand curve for higher education…

A: Given:- Higher education produces positive externality and government provides $8000 subsidy per…

Q: On the basis of the three individual demand schedules in the following table, and assuming these…

A: A private good is a good which has rivalry and is excludable from the consumption purposes. The…

Q: Consider an economy with three people and two goods: private good (x) and public good (y). Suppose…

A: Answer -    Public Goods :- Public goods which are non-rivalious and non-exhaustive in nature and…

Q: Furthermore, suppose that the marginal external damage of this product is $12 per unit. How many…

A: In order to calculate how many more units of this product will the free market produce than is…

Q: Consider a product market with three consumers X, Y and Z with demand function QX = 6 – PX, QY = 3 –…

A: Given the demand curves for X, Y, Z QX = 6 – PX, QY = 3 – ½PY and QZ = 12 – PZ

Q: Suppose the production possibility frontier for an economy that produces one public good (x) and one…

A: When two commodities are manufactured simultaneously, a production possibility curve (PPC) is used…

Q: Answer the question based on the following information for a public good. Pa and Pb are the prices…

A: Public goods are defined as the goods which are non-rivalrous and non-excludable in nature.…

Q: Suppose the government has determined that the socially optimal quantity of chemical pollution is…

A: Given:- Social optimal quantity=120 million ton Price and Quantity demand shown in graph=$8 and 180…

Q: The previous analysis hinges on the government having good information regarding either the demand…

A: Tradable permits are instruments aimed at reducing pollution. A maximum permissible emission rate is…

Q: How large would a subsidy need to be in this market to move the market from the equilibrium level of…

A: The equilibrium level exists at a level where the private value and private cost is equal.…

Q: If the production of oranges reduces global warming, then the equilibrium quantity of oranges will…

A: Equilibrium quantity refers to the quantity that exhibits the level where demand and supply are…

Q: Suppose that speeding imposes externalities on other people resulting in a social cost of $50. A…

A: Externalities occurs in the society or working of the economy when an action or policy is affecting…

Q: When a quota is used with "cap and trade" to control an externality, the government must determine…

A: Cap and trade is a government regulatory program which is used to cap or limit the level of emission…

Q: Suppose 15 people each have the demand Q=220 - 40P for streetlights, and 10 people have the demand Q…

A:

Q: Suppose that there is an unregulated market for pesticides. When the factories produce pesticide,…

A: Externalities in production often result in divergence in the private marginal cost and social…

Q: Consider a public good that has 2 consumers, Dylan and Fred. Dylan’s demand for the public good is…

A: Public goods are perfectly non-rival in consumption and non-excludable. Non-rival means one person's…

Q: Air horns impose many external costs on society: the risk of being deafened, the annoyance of being…

A: Negative externality refers to the cost that is suffered by a third party as a consequence of an…

Q: There are two people. Each person's demand for a public good is P = 20 - Q. The marginal cost of…

A: Public good is a common good which is enjoyed by all people in the society but by using the public…

Q: Consider an economy with three people and two goods: private good (x) and public good (y). Suppose…

A: Public Goods refer to the goods that are non-excludable and nonrival in nature. It is usually…

Q: The private market demand curve for flu shots is P= 100 - 4Q, and the supply curve for flu shots is…

A: Answer: To find the private market equilibrium quantity of shots produced let us equate the private…

Q: Assume the market demand for cigarettes is as follows:     Price per pack 1.00 1.50 2.00 2.50…

A: In a social demand curve, externalities occur in the market are accounted for. Externalities are…