Question

A cost or benefit of the production or consumption of a good or service that falls...

A cost or benefit of the production or consumption of a good or service that falls on parties that are not directly involved in the transaction is called

a non-excludable good.
a non-rival good.
a public good.
a private good.
an externality.

Marginal external cost is

the extra cost that a consumer pays in order to purchase one more unit of a product.
paid entirely by parties paying for a transaction and not by non-paying bystanders.
the extra cost that a firm pays in order to produce a product.
all the costs incurred by people affected by a transaction, both the direct paying parties and the bystanders.
the marginal cost of production that accrues to individuals and firms not directly involved in the transaction.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Such costs of benifits are known as externalities. Externality can be positive or negative. A positive externality is one in which the third party not involved in the transaction is benifitted and negative externality is one in which the third party has to bear a cost.

2. It is the marginal cost of production that accrues to individuals and firms not directly involved in the transaction. It is not borne by the people directly involved in a transaction , rather it is borne by people and firms not involved in the transaction.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The rule of thumb for a government deciding whether to provide a public good is that...
The rule of thumb for a government deciding whether to provide a public good is that the: a. sunk cost of the good should be equal to the marginal benefit. b. marginal cost of the good should be less than the marginal benefit. c. opportunity cost of the good should be greater than the marginal benefit. d. variable cost of the good should be greater than the sunk cost. From society’s perspective, the deadweight loss associated with a positive externality...
1.) An FM radio signal is an example of a good that is A private. B...
1.) An FM radio signal is an example of a good that is A private. B nonrival in consumption. C social. D nonexcludable in production. 2.) A local park filled with picnickers is A excludable and rival in consumption. B excludable and not rival in consumption. C not excludable and rival in consumption. D not excludable and not rival in consumption. 3.) Under which of the following scenarios would a park be considered a public good? A Visitors to the...
A public good has a marginal cost of $100 per unit. There are four people in...
A public good has a marginal cost of $100 per unit. There are four people in the population who have marginal private benefits from the public good given by 50−Q, 100−3Q, 25−Q, and 65 − 2Q respectively. a) What is the efficient amount of the public good? Explain your answer, and explain what makes this different from a private good. b) If you didn’t know how each consumer valued this public good, what issues might you run into if you...
Question 26 26) Free markets fail when: a. there are externalities present in the market b....
Question 26 26) Free markets fail when: a. there are externalities present in the market b. they fail to provide public goods and services in the amounts society wants c. they fail to provide private goods and services in the amounts that society wants d. all of the above 3 points Question 27 27) When negative externalities are present in a market: a. too much of the good or service is produced b. an external cost is imposed on others...
28- Public goods create a free-rider problem because only people who pay for the good or...
28- Public goods create a free-rider problem because only people who pay for the good or service can enjoy the good or service. the good or service is rival in nature. the good or service is excludable. people can enjoy the good or service no matter whether or not they pay for it. 29- For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve? public goods...
Question 7 (1 point) Which of the following statements is true? a Examples of public goods...
Question 7 (1 point) Which of the following statements is true? a Examples of public goods include national defense, public music concerts, and outdoor fireworks displays. b Quasi-public goods are those that have large positive externalities (or spillover benefits). That is, quasi-public goods not only benefit those who pay for it but also some third party external to the market transaction. c The government typically sponsors the provision of quasi-public goods. d All of the above. e Only a) and...
Which of the following statements is true? a A market failure occurs when the market produces...
Which of the following statements is true? a A market failure occurs when the market produces the “wrong” amount of a good or service, or fails to provide any at all. b When there is market failure, resources are either over-allocated or under-allocated to the production of the good. c Supply-side market failures occur when it is impossible to charge all consumers, or even any consumer of the good, the price for the good. As a result, firms are not...
Which of the following statements is FALSE? A. Private bargaining will lead to an efficient outcome...
Which of the following statements is FALSE? A. Private bargaining will lead to an efficient outcome in the case of externalities, regardless of transaction costs. B. Due to non-excludability of public goods, many people are unwilling to pay for their own consumption. C. An outcome is efficient when marginal social benefit equals marginal social cost. D. The external cost resulting from a negative externality can be reduced by imposing a Pigouvian tax. Reset Selection Question Suppose that the market for...
                18) A tax on luxury goods such as yachts (expensive private boats) would have all...
                18) A tax on luxury goods such as yachts (expensive private boats) would have all of the following effects except: A. RAISE THE PRICE PAID BY BUYERS OF YACHTS B. REDUCE THE PRICE RECEIVED BY PRODUCERS OF YACHTS AFTER THE TAX IS REMITTED C. RAISE THE TOTAL AMOUNT SPENT ON YACHTS D. REDUCE THE QUANTITY BOUGHT AND SOLD OF YACHTS                 19) In a perfectly competitive market for some product it is assumed that A. THE PRODUCTS SOLD BY...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT