Question

Pls describe the “Optimal output for a good with positive externalities” by plotting necessary graphics

Pls describe the “Optimal output for a good with positive externalities” by plotting necessary graphics

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The followng graph represents positive externality. Q is the market quntity produced, but Q* is the socially optimum quantity. That means, the socitety will gain more if Q* amount is produced. Thus the less than optimum quantity has resulted in welfare loss, represented by the shaded traingle between Q and Q* above the marginal cost curve.

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
Pls explain the relationship between marginal social cost and marginal social benefit by plotting the necessary...
Pls explain the relationship between marginal social cost and marginal social benefit by plotting the necessary graphics.
Suppose the production of a good results in negative externalities. If all costs are taken into...
Suppose the production of a good results in negative externalities. If all costs are taken into account, then a.output will occur at the socially optimal level. b.the price of the product will be higher than if all costs are not taken into account. c.more output will be produced than if all costs are not taken into account. d.a and b e.  a, b, and c
Please describe and show by means of graphs examples of positive and negative externalities. Make sure...
Please describe and show by means of graphs examples of positive and negative externalities. Make sure to indicate Qs in all cases and draw a conclusion.
Assignment Details Externalities are costs or benefits that are caused by producing or consuming a good...
Assignment Details Externalities are costs or benefits that are caused by producing or consuming a good but that are not included in the market price for the good. They are simply the unintended side effects of market activities. Externalities can be positive or negative. One example of a positive externality might be when beekeepers provide a means of pollination for fruit growers. Air, water, and noise pollution are examples of negative externalities. Please answer the following questions to describe an...
Explain how cost-benefit analysis is used to determine the optimal quantity of a public good. Identify...
Explain how cost-benefit analysis is used to determine the optimal quantity of a public good. Identify the purpose of cost-benefit analysis and explain the major difficulty in applying this analysis. Explain what is meant by externalities or spillovers. Explain the Coase theorem, its significance, and the three conditions necessary for it to work.
Which of the following statements is FALSE? A. When products that create positive externalities are produced,...
Which of the following statements is FALSE? A. When products that create positive externalities are produced, at the market equilibrium output, the marginal social benefit generated by consuming the product exceeds the marginal private benefit. B. When there is a negative externality, the competitive equilibrium output is greater than the economically efficient output level. C. The marginal social benefit of a given level of production of a public good is the vertical sum of all marginal private benefits for that...
Is macro equilibrium always at an optimal level of output? Describe the types of undesirable equilibriums...
Is macro equilibrium always at an optimal level of output? Describe the types of undesirable equilibriums (macro failure)
describe a good authentication policy which should include password requirements and MFA, if necessary.
describe a good authentication policy which should include password requirements and MFA, if necessary.
Active aging is a term used to describe the maintenance of positive subjective well-being, good physical,...
Active aging is a term used to describe the maintenance of positive subjective well-being, good physical, social and mental health and continued involvement in one’s family describe an understanding?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT