The result that, under certain conditions, government intervention is unnecessary to fix a negative externality because it can be eliminated through bargaining between the affected people is called Multiple Choice collective bargaining. a Nash equilibrium. social justice. the Coase Theorem.
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A: Negative externalities are negative side effects of economic activities that are not captured by the…
Q: The cost (supply) of each "unit" of NPR (National Public Radio) is P=9, Derek's valuation for each…
A: MC of NPR = 9 Derek's Valuation : Pd = 20 - 2Qd Qd = ( 20 - Pd)/2 Kim's Valuation : Pk = 10 - Qk…
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A: (H) All statements are incorrect.
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A: Given: NPR: P= 9 Derek's demand: PD = 20-2Q Kim's demand: PK = 10-Q Total demand: Pdemand = 30 - 3Q
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A: the correct answer is Too little of the good will be produced
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- Which of following would make it more likely that an externality problem could be solved efficiently through private bargaining. There are large groups of people involved. O The property rights are defined for all of the individuals involved O There is a tax on those who are creating the externality O It is easy to assign roles such as victim and perpetratorThe cost (supply) of each "unit" of NPR (National Public Radio) is P=9. Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pg=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Qr= P. The appropriate subsidy is $ (include 2 decimals) per unit of NPR.What does Coase mean by "the reciprocal nature" of the problem of negative externalities? the avoidance of harm done by one party causes harm to that party all people hurt all other people people take turns hurting each other
- What is the main problem associated with negative externalities? a) They lead to an overallocation of resources. b) They result in inefficiency in resource allocation. c) They encourage competitive markets. d) They have no impact on market outcomes.Problems and Applications Consider two types of cars: gasoline-powered cars and electric cars. Because conventional gasoline-powered cars burn fuel during their operation, people who drive gasoline-powered cars impose a externality on the society. A policy implication of this result is a those who drive gasoline-powered cars. Because electric cars help reduce greenhouse gas emissions, people who drive electric cars impose a externality on the society. A policy implication of this result is a those who drive electric cars.The Pigouvian solution to externalities directly compensates those who have had harm done to them. Choose T or F: a. True b. False
- Automobile production imposes a negative externality. The government imposes a per-unit tax on automobiles to reduce the impact of this externality. With this tax, at the market quantity, the Marginal Social Benefit of the last automobile produced is lower than the Marginal Social Cost of the last automobile produced. This tax: Group of answer choices is too low to implement the efficient quantity. is too high to implement the efficient quantity. implements the efficient quantity because in the market equilibrium with the tax we have Marginal Private Benefit equal to Marginal Private Cost. Need information on Marginal Private Benefit and Marginal Private Cost at the market equilibrium with the tax to determine if the market outcome is efficient.which statement is true In the absence of market power and externalities, efficiency is achieved in a market when the sum of producer surplus and consumer surplus is maximized. The benefit received by sellers in a market is measured by producer surplus and producer surplus is calculated as the amount sellers receive for their product minus the cost of production. In a market, the marginal buyer is the buyer who would be the first to leave the market if the price were any higher. Moving production from a high-cost producer to a low-cost producer will decrease total surplus. Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant. Total surplus in the market is the summation of consumer surplus and producer surplus and it is maximized at the market equilibrium in the absence of…Pareto-optimality can theoretically be achieved, even in the presence of negative externalities, by setting a tax at the correct level. is it true or false
- Why the presence of the product variety externality does imply that there is too little entry of new firms in the market?Acceptable social norms and social recognition act like corrective taxes and subsidies. Social norms act as a corrective tax by discouraging people from partaking in an action that will cause a negative externality by fear or shame of being judged harshly by others in society. Likewise social recognition can act as a corrective subsidy and cause people to partake in more activities that will create positive externalities. Classify the following examples of social norms by whether the behavior is undertaken to avoid society's judgement, i.e., working as a corrective tax, or to receive social recognition, i.e., working as a corrective subsidy. Corrective Tax Corrective Subsidysuggest a potential solution to that student's problem. How would you internalize their externality or dissuade the free riding? A time I have experienced negative externality would be air pollution. The wild-fires in Canada have caused a tremendous amount of air pollution (smoke), while these fires are 'controlled' they have gotten out of hand and aren't benefiting the public. The smoke has created an unhealthy air level and can in some cases cause death, going outside I can clearly see the smoke that has traveled and I can smell it. Some of my friends have to stay inside because of health conditions, although it was meant to prevent a larger fire it has created a larger problem as it has gotten out control. This is problematic because there's almost no way of clearing up the smoke and people who will suffer from its outcome will not receive any compensation. It will also effect wild-life and plants, it will be hard to reverse the effects of this fire and the harm it has done. With…