Definition consider the market illustrated in the

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5: DefinitionUse the point drawing toolto indicate the efficientequilibrium price and quantity. Label this point 'Efficientequilibrium'.Carefully follow the instructions above, and only draw therequired objects.QuantityConsider the market illustrated in the figure to the right.Supply curverepresents the private cost of productionand demand curverepresents the private benefit fromconsumption. Supposeof this good createsaexternality. Show how the externality affectsthe market.S1D1consumptionpositive51.)Use the line drawing toolto draw either a new supply() or demand () curve incorporating theexternality in. Properly label this line.2.)Use the point drawing toolto indicate the marketequilibrium price and quantity. Label this point 'Marketequilibrium'.3.)Use the point drawing toolto indicate the efficientequilibrium price and quantity. Label this point 'Efficientequilibrium'.Carefully follow the instructions above, and only draw therequired objects.QuantityS1
11/7/17, 4’02 PMChapter 5 Homework-Sierra Rich5.How do property rights affect externalities and market failure?A.Externalities and market failure will result.from the difficulty of enforcing property rightsB.Externalities will be positive and market failure will not occur when property rights areenforced.C.Externalities and market failure will not occur when.property rights are incompleteD.Externalities and market failure will result from producers having all the property rights.E.Externalities will be positive and market failure will not occur when property rights are dividedequally among market participants.
Page 3 of 116.and marginal benefit from reducing sulfur dioxidepollution. Suppose also that the United States is currentlyplanning to eliminate 5.5 million tons of pollution per year.What would be the net benefit to the United States ofinstead eliminatingmillion tons of sulfur dioxide?10.0Use the triangle drawing toolto shade in the net benefit tosociety from eliminatingmillion tons of pollution peryear compared to eliminating 5.5 million tons of pollution.Label this shaded area 'Net benefit'.10.0Carefully follow the instructions above, and only draw therequired objects.0123456789 10 11 12 13 14 150255075100125150175200225250275300325350375400Reduction in sulfur dioxide emissions (mil tons per year)Cost or benefit (dollars per ton)7.Suppose the figure to the right illustrates the marginal costand marginal benefit from reducing sulfur dioxidepollution. Suppose also that the United States is currentlyplanning to eliminate 5.5 million tons of pollution per year.What would be the net benefit to the United States ofinstead eliminatingmillion tons of sulfur dioxide?10.0Use the triangle drawing toolto shade in the net benefit tosociety from eliminatingmillion tons of pollution peryear compared to eliminating 5.5 million tons of pollution.Label this shaded area 'Net benefit'.10.0Carefully follow the instructions above, and only draw therequired objects.0123456789 10 11 12 13 14 150255075100125150175200225250275300325350375400Reduction in sulfur dioxide emissions (mil tons per year)Cost or benefit (dollars per ton)

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Term
Spring
Professor
RichardMcIntyre
Tags
Microeconomics, Notes, Midterm, IPad, Chapters, Pdf, Ebook, Full, Typed, Econ102

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