If a firm does not pay for an external cost, who does? Why might there be a deadweight loss in a positive externality situation, when the amount bought and sold in the market is below the market optimal equilibrium amount? Why might private firms not want to produce certain types of goods?

Q: Morrison Inc. produce disposable nappies at marginal cost given by MC = 1.5Q, where Q is number of…

A: A deadweight loss could be a social group price incurred as a result of market unskillfulness that…

Q: A market with a negative externality has marginal benefits mb = 60 – 0.15q, marginal private costs…

A: Negative externality refers to the external damage to the third party which is not directly involved…

Q: Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby…

A: Market equilibrium quantity Equilibrium quantity is a point of production in the market when there…

Q: The supply and demand conditions facing a firm that makes widgets and generates a negative…

A: The equilibrium (without including social costs) will takes place where Demand is equal to Marginal…

Q: Comparing Private and Socially Optimal Outcomes with Externalities in a Table: Interactive Practice…

A: Negative externalities means the effect of economic activities on other person's wellbeing…

Q: If policymakers use a pollution tax to control​ pollution, the tax per unit of pollution should be…

A: If policymakers use a pollution tax to control​ pollution, the tax per unit of pollution should be…

Q: Explain how to provide an efficient quantity of public goods  Describe how the delivery of public…

A: ANSWER.1 economy have two types of commodities: public goods and private goods. A person's private…

Q: If the units of output purchased in a competitive market generate positive externality benefits, we…

A: Positive externalities generate an external benefit to third parties. This is the spillover or…

Q: Which of the following statements is (are) TRUE? I. In the face of a positive externality, a…

A: Externality is one of the economic concepts that is used to explain the market situation when the…

Q: The supply and demand conditions facing a firm that makes refrigerators and generates a negative…

A: Negative externality refers to when third party incurs cost of transaction in which it is not…

Q: Refer to Figure 2. This market is characterized by a positive externality. a negative externality.…

A: Externality arises whenever one economic agent's activity affects the society or any other third…

Q: Suppose that in greater Sydney, the demand for flowering plants is given by P = 60 – Q, and supply…

A: Externalities refer to the cost or benefits of a transaction incurred on a third party who is not…

Q: What happens in a supply and demand diagram of the pesticide market when a corrective tax is used to…

A: Externality refers to the situation under which the actions of the producer or the consumer affects…

Q: Now suppose that scientists discover that this particular product has a significant Positive…

A: In economics, one of the major causes of market failure is the presence of externalities. An…

Q: Environmental taxes tend to be regressive because... only income taxes can be progressive. O they…

A: A tax is regressive if people having higher (lower) income bear a lower (higher) proportion of their…

Q: What do you understand by externalities? Why do they have to be addressed for sustaining economic…

A: A cost or benefit accumulated or obtained by a production company that is not paid for by that…

Q: Consider a good with positive externalities. Relative to the outcome of an unregulated market, a…

A: Positive externalities occurs when prices are lower and quantities are higher.

Q: What divergences arise between equilibrium output and efficient output when (a) negative…

A: Positive externality is a benefit enjoyed by the third party as a result of an economic transaction.…

Q: А. What is the competitive equilibrium price and quantity of straws? B.: It turns out that straws…

A: Competitive equilibrium is a condition in which profit-maximizing producers and utility-maximizing…

Q: shows the supply and demand conditions for a firm that will play trumpets on the streets when…

A:

Q: Which of the following is NOT a possible way of solving an externality problem of electricity…

A: A negative externality refers to negative spillover effects on the third party or on the society.

Q: Suppose that demand for a product is Q=1,200–4P and supply is Q = –200+2P. Furthermore, suppose that…

A: Here the Demand function is Q = 1200-4P Supply function is Q = -200+2P Calculating the equilibrium…

Q: The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle…

A: This is an example of negative externality where a part of society who is not involved in production…

Q: Explain the role of the government is trying to provide a solution when an externality is present

A: Externalities are the costs and benefits that affect a third party who actually does not choose to…

Q: Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river,…

A: Quantity Private Cost Social cost = Private cost + 135 1 90 225 2 150 285 3 315 450 4 405…

Q: In the graph above, what areas comprise the negative externality damage when the market is…

A: The externality is generated when a firm or an individual engages in an activity that affects the…

Q: The market for plasticans is perfectly competitive. Market Supply is given by Q=6P and Market Demand…

A: GIVEN   The market for plasticans is perfectly competitive. Market Supply is given by Q = 6P…

Q: Suppose electricity generates a negative externality in production If​ so, then   A. the marginal…

A: Negative externality refers to the act of spillover of costs to the third party. Marginal cost…

Q: Describe how government actions can lead to more efficient outcomes when negative and positive…

A: Externalities are certain benefits or losses accrue to a third person who is not involved in the…

Q: explain both statements in detail with graphs and examples. "When external benefits exist,…

A: When external benefits exist, maximizing private profits produces less than the social optimum…

Q: Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river,…

A: Quantity Private cost Social cost=Private cost +105 Demand 1 70 185 630 2 140 245 490 3 245…

Q: Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby…

A: The market equilibrium occurs at the point where private cost curve (supply) and private benefits…

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

A: Given Demand equation :- P = 100 - 1.5QD Supply equation :- P = 0.5QS External cost = $8

Q: it is microeconomics    If a firm does not pay for an external cost, who does? Why might there be…

A: If a firm does not pay for an external cost, who does? Answer External costs are the cost, which is…

Q: Which of these is an ideal economic situation that leads to a positive externality? a. Social costs…

A: An externality is a cost or benefit incurred or received by a producer that is not paid for by that…

Q: The supply and demand conditions facing a firm that makes widgets and generates a negative…

A: Quantity supplied without paying social costs is equal to quantity supplied by paying only private…

Q: Which of the following statements about a market that is aftected by a positive externality is…

A: Externalities refer to the costs or benefits of an economic transaction incurred by a third party…

Q: Suppose that in greater Sydney, the demand for flowering plants is given by P = 60 - Q, and supply…

A: Demand for flowering plant P = 60 -Q  Supply = 0.2Q  Marginal external benefit = $6

Q: Illustrate and briefly explain the following scenarios that exhibit externalities in the market.…

A: The markets are the place where the meeting and interactions of the buyers and sellers of various…

Q: Identify the following situations as an example of a negative or a positive externality: a. You are…

A: An externality is said to occur when the action of one party impacts a third uninvolved party.…

Q: If the external marginal cost from Booming Berries is $20 per thousand pounds, what is the socially…

A: The negative externality will shift supply curve leftward by $20, to S1, as shown below.

Q: Figure 5-1 shows a market with an externality. The current market equilibrium output of Q1 is not…

A: Externality refers to positive or negative effect of production or consumption of good on third…

Q: 1) An excavating company pollutes a local stream with acid rock. 2) A family enjoys a Fourth of July…

A: Answer in step 2

Q: Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a…

A: The negative externality is a type of market failure, where an economic action of one person impose…

Q: Explain why, in the absence of governmental environmental regulation, competitive markets…

A: Externality is the spillover effect to the third party other than the immediate market participant.…

Q: 1. Suppose the price of product X is reduced from $16.00 to $12.00 and, as a result, the quantity of…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…