48- Price and cost (thousands of dollars) The graph shows the marginal private benefit of a veterinary degree and the marginal cost of obtaining a veterinary degree. The marginal external benefit is $8,000 per veterinary graduate per year. If the government offers vouchers to those who enroll at a veterinary school, what is the value of the voucher that achieves the efficient number of students? 40- Draw the marginal social benefit curve. Label it MSB Draw an arrow at the efficient number of students to show the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $☐ per student >>> Remember that the quantity given on the y-axis is in thousands of dollars. 32- 24- S-MC 16- 8- D=MB 0 20 30 Students (thousands per year) >>> Draw only the objects specified in the question G

48- Price and cost (thousands of dollars) The graph shows the marginal private benefit of a veterinary degree and the marginal cost of obtaining a veterinary degree. The marginal external benefit is $8,000 per veterinary graduate per year. If the government offers vouchers to those who enroll at a veterinary school, what is the value of the voucher that achieves the efficient number of students? 40- Draw the marginal social benefit curve. Label it MSB Draw an arrow at the efficient number of students to show the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $☐ per student >>> Remember that the quantity given on the y-axis is in thousands of dollars. 32- 24- S-MC 16- 8- D=MB 0 20 30 Students (thousands per year) >>> Draw only the objects specified in the question G

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 1WNG

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Some economists claim that early child care generates an external benefit to society. Use the below graph to answer the following questions. Price ($ per month) Supply 1,300 1,200 1,000 900 Marginal Social Benefit 1. Marginal Private Benefit 23 26 Quantity (millions per month) What is the market equilibrium? What is the socially optimal outcome? How do they differ? a. b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? с. How much is the total government subsidy each month to reach a socially optimal outcome?
The graph shows the marginal private benefit from a veterinary degree and the marginal cost of obtaining it. The marginal external benefit is $8,000 per veterinary graduate per year. Suppose the government decides to subsidize private veterinary schools. Draw the marginal social benefit curve. Label it MSB. Draw the supply curve when the government provides a subsidy that achieves the efficient number of students. Label it S - MC. Draw an arrow to show the subsidy per student at the efficient number of students. The subsidy that achieves the efficient number of students is $ student. >>> Remember that the quantity given on the y-axis is in thousands of dollars. Oll 70 y Selected: none & 7 O * 8 per 0 * ✓ O 9 40- 32- 24- 16- 8- 0- 0 Price and cost (thousands of dollars) 4 F 10 40 30 Students (thousands per year) >>> Draw only the objects specified in the question. Delete Clear Р 20 +S=MC ? D=MB 50 Next 18 X SU 10
The graph shows the demand for university education. The marginal cost of educating a student is a constant $6,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students. Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students that shows the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ >>> Remember that the price given on the y-axis is in thousands of dollars. a student. C 10- 9- 8- 7- 6- 5- 4 3- 2- 1 0- Price and cost (thousands of dollars per student per yea 0 10 S=MC 30 40 50 20 Students (thousands per year) >>> Draw only the objects specified in the question. D=MB 60
The graph shows the demand for university education. The marginal cost of educating a student is a constant $5,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are public, calculate the tuition that will achieve the efficient number of students. How much will taxpayers have to pay? COC Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that universities charge is $thousand per student. The amount paid by taxpayers is $thousand per student 1804 704 60 504 404 30 20 10 Price and cost (thousands of dollars per student per ye 00 DEMB 79 20 880 10 20 30 40 50 60 Students (thousands per year) >>> Draw only the objects specified in the question
Draw diagram to show the effect of a positive externality that occurs as a result of a consumer’s decision making process. (before and after the total social benefit is considered) In which ways can a government make sure that the social cost is reflected in the firm’s supply? How can the government make sure that the social benefit is reflected in the consumer’s demand?
Some economists claim that early child care generates an external benefit to society. a. What is the market equilibrium? What is the socially optimal outcome? How do they differ? b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? c. How much is the total government subsidy each month to reach a socially optimal outcome?
The table below describes the market for higher education. Higher education confers positive externalities on society, and so the private+social marginal benefits are higher than the private marginal benefits. 2 Quantity 10,000 11,000 12,000 13,000 14,000 Calculate the value of the subsidy that society would need to allocate to higher education in order to achieve the social equilibrium. Express your answer without units (i.e., if your answer is "$500", type "500" in the answer box). Type your answer.... # JOE 3 E W 5 X D 16 20 F3 C $ 4 Private marginal benefits $80,000 $75,000 $70,000 $65,000 $60,000 888 FA R F V % 5 T F5 6 MacBook Air B F6 Y Private+ social marginal benefits $90,000 $85,000 $80,000 $75,000 $70,000 & 7 H F7 tv NA U N * 8 J F8 1 ( 9 K M Marginal costs $70,000 $75,000 $80,000 $85,000 $90,000 O .O. L Aa P zoom
Use the graph attached below as a starting point (either download it or print it out). Add curves, labels, etc. to this graph in order to show the following: 1. Show that this good has a $4/unit negative externality (external cost), such as pollution. 2. Shade the area that represents the Deadweight Loss (lost gains from trade) caused by the external cost. 3. Show a tax or subsidy wedge (whichever you think is appropriate) that will solve the problem of the external cost. 4. Show the socially optimal level of production that the Pigouvian tax or subsidy above will help the market to achieve. You may use software or pencil and paper to complete this graph. Upload it here when you are done.
The graph shows the marginal private benefit from a law degree and the marginal cost of obtaining a law degree. The marginal external benefit is $16,000 per law graduate per year. Suppose the government offers vouchers to those who enroll at a law school. Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students to show the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ >>> Remember that the quantity given on the y-axis is in thousands of dollars. per student. C 48- 40- 32- 24- 16- 8- Price and cost (thousands of dollars) S=MC D = MB 10 30 40 Students (thousands per year) >>> Draw only the objects specified in the question. 20 50 o
Question 25, 15.3 Additional Problem 25 (algo) The graph shows the demand for university education. The marginal cost of educating a student is a constant $5,000 a year and education creates an external benefit of a constant $1,000 per student per year. If all universities are public, calculate the tuition that will achieve the efficient number of students. How much will taxpayers have to pay? ... Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. 8.0- 7.0- 6.0- 5.0- 4.0- 3.0- 2.0- 1.0- Price and cost (thousands of dollars per student per yea D=MB 20 30 40 50 60 70 80 Students (thousands per year) >>> Draw only the objects specified in the question. 0.0+ 0 10 o Ly Sav-
PRICE OF WILDFLOWERS 9. Efficiency in the presence of externalities Wildflowers grant many external benefits on society: the benefits they bestow on pollinators and other native species, improving local ecosystems, and so on. Therefore, the market equilibrium quantity of wildflowers does not equal the socially optimal quantity. The following graph plots the demand for wildflowers (their private value), the supply of wildflowers (the private cost of producing them), and the social value of wildflowers, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socialy optimal quantity. Supply Market Equilibrium (Private Cost Social Value Demand (Private Value) QUANTITY OF WILDFLOWERS Socially Optimal Level
From CNN what news article represents an issue ragards to Externalities or that can be realted to externalities? Cite at least one source (News Article, Video, etc.) for any data. Explain: What is the Economic issue? (Describe the issue) What is the connection to Externalities? (positive, negative, policy) (Use Math, Graph or data to explain or support your idea) Explain how this affects the Economy (individual, industry, national or global)