Given proper introduction step and proper calculation will upvote.HAND written solution is not allowed If the government imposes a corrective subsidy to fix the positive externality, what shouldthat corrective subsidy be equal to?ОPricePm-PnPmPm-PoPn-PoPmPnmtEnPo°0QmQnQoD₂ = Marginal social benefitD₁ Marginal private benefitQuantity

A positive externality implies that the economic activity of an agent (the producer or consumer)…

Answered: If the government imposes a corrective…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section10.1: Externalities And Market Inefficiency

Problem 1QQ

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Give an example of a positive externality and an example of a negative externality.
Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
Which activity generates a positive externality? O You buy a new jet-ski and find $5,000 under the seat. O Your neighbor begins building an addition onto his home at 6 a.m. O Your neighbor installs a bat house, and the bats eat mosquitoes. O Dave buys dental insurance but decides not to take the time to get his teeth cleaned at the dentiet
What is the externality in the market for alcohol? Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves. Identify the market equilibrium quantity, the socially optimal quantity, and thedeadweight loss associated with the externality. What policies do governments use to try to eliminate the externality associated with drinking DRAW PICTURE PLUS STEP BY STEP HOW TO DRAW IT Draw a market diagram for alcoholic beverages, including private and social cost curves and private and social value curves Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Compared to a good with no externalities, a good with a negative externality will appear to have experienced a Increase in Supply ODecrease in Supply Olncrease in Demand i ODecrease in Demand i at each corresponding price.
Some economists argue that early child care generates an external benefit to society. Consider the following supply-and-demand graph for early childhood education. A. How does the market equilibrium differ from what is best for society? B. If the government was going to provide a per-unit subsidy in this market in order to achieve the socially optimal outcome, how large of a subsidy would the government ne to provide? C. How much in total would the government need to spend in this market each month to achieve a socially optimal outcome? Price ($ per month) Supply $1,300 $1,200 $1,000 $900 Marginal social benefit Marginal private benefit (demand) 23 26 Quantity (millions per month)
Which of the following is an exampleof a negative externality? A. Abeekeeper selling honey at a farmers'market B. A factory emittingpollutants into the air C. A restaurantoffering a discount to senior citizensD. A farmer using organic farmingmethods.
Use the graph attached What is the dead weight loss that results from this externality. a) QE - Q* b) Pc- PE c) Pc- Pp d) (Pc-Pp) * QE e) (Pc-Pp) * (QE-Q*) x ½
Identify a positive externality in consumption via example, and if possible include a link to a source. You are allowed to “make one up” and not include a web link. Note you are required to include a supply and demand graph in your posting. A. Identify the impacted markets, where the externality arises, and who is impacted by the externality. In the pollution examples, the externality arises in the market for a good being produced, where a by-product of that production is pollution. The impacted parties are those who also consume (a dirtier) environment. Include a supply and demand graph in your posting, i.e. displayed in your posting not only available with a link. B. Discuss the difference between the best outcome for society and the best outcome for the involved individuals. C. Create two reasonable policies that may be enacted to encourage the market to ‘not fail’. I.e. what structures or incentives/penalties might the government put in place to lead the market toward a socially…

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If the government imposes a corrective subsidy to fix the positive externality, what should that corrective subsidy be equal to? О Price Pm-Pn Pm Pm-Po Pn-Po Pm Pn m t En Po ° 0 Qm Qn Qo D₂ = Marginal social benefit D₁ Marginal private benefit Quantity