1 answer

• Distinguish between marginal private cost and marginal social cost • Define marginal damage • Explain...

Question:

• Distinguish between marginal private cost and marginal social cost • Define marginal damage • Explain why market efficiency
• Distinguish between marginal private cost and marginal social cost • Define marginal damage • Explain why market efficiency is affected in the case of externalities

Answers

1) Marginal private cost (MPC) is the change in the producer's total cost brought about by the production of an additional unit of a good or service whereas, the marginal social cost of production is the producer's cost plus the external cost.


2) Marginal damage is defined as the additional damage caused by an additional unit of emission.


3) An externality stems from the production or consumption of a good or service, resulting in a cost or benefit to an unrelated third party. Externalities lead to market failure because a product or service's price equilibrium does not accurately reflect the true costs and benefits of that product or service.

.

Similar Solved Questions

1 answer
Enter your answer in the provided box. Hydrogen sulfide decomposes according to the following rea...
Enter your answer in the provided box. Hydrogen sulfide decomposes according to the following reaction, for which Kc = 9.30 × 10^−8 at 700°C: 2 H2S(g) ⇌ 2 H2(g) + S2(g) If 0.41 mol of H2S is placed in a 3.0L container, what is the equilibrium concentration of H2(g) at 700°C...
1 answer
Q.6) Seven wood planks are used to construct a built-up beam shown below. The beam is subjected t...
Q.6) Seven wood planks are used to construct a built-up beam shown below. The beam is subjected to a vertical force of 12 kN, and has an Iz 1.5 x 109 mm The allowable shear force for nails at A and B is 250 N. Determine the maximum spacing for horizontal nails at A and vertical nails at B. 50 300 50...
1 answer
Please answer right thanks :) want to learn! Its a two parter I think since he...
Please answer right thanks :) want to learn! Its a two parter I think since he lumped them together. 1) A point charge is located at the center of two thin, concentric, non-conducting spherical shells (both charged). The flux through a gaussian sphere of varying radii (centered at point P) is as fol...
1 answer
(10 points) The cross-section shown below has a moment of inertia I, 1829.60 in and a...
(10 points) The cross-section shown below has a moment of inertia I, 1829.60 in and a centroid y = 6.58 in as shown. Use shear force V 120 kip Section Q (in) Shear Stress (ksi) A-A B-B Neutral Axis D-D E-E 20 in A TA 2 in *B B ΝΑ. 8 in 2 in 6.58 in D D 2 in 15 in (a) find the magnitude of t...
1 answer
Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Novak Company....
Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Novak Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair...
1 answer
9.(10 pts) A mixture of MnSO4 and MnSO4-4H2O has a mass of 2.005 g. After heating...
9.(10 pts) A mixture of MnSO4 and MnSO4-4H2O has a mass of 2.005 g. After heating to drive off all the water the mass is 1.780 g. How many grams of MnSO4-4H20 are presented in the mixture? What is the mass percent of MnSO4-4H20 in the mixture?...
1 answer
Air Taxi, Inc. has a long-term debt ratio of 48 and a current ratio of 1.27....
Air Taxi, Inc. has a long-term debt ratio of 48 and a current ratio of 1.27. Current liabilities are $3,526, sales are $10,792, profit margin is 8 percent, and ROE is 11.7 percent. What is the total of the firm's net fixed assets? $ Long-term debt ratio Current ratio Current liabilities Sales Pr...
1 answer
Calculate Vo(t) for the following figure. Please explain with steps! Thanks 1. Calculate vo(t) for the...
Calculate Vo(t) for the following figure. Please explain with steps! Thanks 1. Calculate vo(t) for the following figure. 8 cos(21 + 30°) V 0.5 MF w 10 ΚΩ 2 k22 HA...
1 answer
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the...
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter $182,000 91,000 91,000 18,20...
1 answer
Do I capitalize French fries as in
Do I capitalize French fries as in ...I served french fires on china plates to the ladies....
1 answer
Problem 2 (Required, 25 marks) Tina borrows an amount $500000 from the bank and agrees to repay the loan by 4n leve...
Problem 2 (Required, 25 marks) Tina borrows an amount $500000 from the bank and agrees to repay the loan by 4n level monthly payments (with amount X) made at the end of every month. The first repayment will be made 1 month after today. You are given that • The loan charges interest at an annual...
1 answer
Must use google earth to search the place 1:20 PM 57% X GE Dynamic Ocean rev...
must use google earth to search the place 1:20 PM 57% X GE Dynamic Ocean rev Fall 2015.pdf 1. In the search text box in the upper left-hand corner, type in Cape May, New Jersey and hit Enter. Notice the iregularity of the shoreline just to the south of Beach Ave (Rt. 604) What would cause this u...
1 answer
THE PROBLEM After reading about the risks and benefits of taking vitamin supplements as part of...
THE PROBLEM After reading about the risks and benefits of taking vitamin supplements as part of your daily routine. you decide to start taking vitamins C and E to decrease your risk of heart attack and cancer. Some articles recommend taking mega doses more than once a day, while others suggest you t...
1 answer
How do you solve #\frac { t } { 2} = - 2.2#?
How do you solve #\frac { t } { 2} = - 2.2#?...
1 answer
You work for a company that always pushes the envelope with respect to reporting revenues and...
You work for a company that always pushes the envelope with respect to reporting revenues and expenses. You often disagree with the company because its approach to reporting these amounts cannot be justified from a GAAP perspective. You are upset and are considering whether this is a company that ha...
1 answer
A homogeneous, 4-ft-wide, 9.7-ft-long rectangular gate weighing 800 lb is held in place by a horizontal...
A homogeneous, 4-ft-wide, 9.7-ft-long rectangular gate weighing 800 lb is held in place by a horizontal flexible cable as shown in the figure below. Water acts against the gate, which is hinged at point A. Friction in the hinge is negligible. Determine the tension in the cable. Assume L1 = 9.7 ft, L...