Market demand is MWTP= 50 - 2Q. Market supply is MC = 10 + 2Q. Each unit transacted results in a $4 external benefit. What is the deadweight loss from the perfectly competitive market without taxes or subsidies?
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Market demand is MWTP= 50 - 2Q. Market supply is MC = 10 + 2Q. Each unit transacted results in a $4 external benefit. What is the
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- Market demand is MWTP= 50 - 2Q. Market supply is MC = 4 + 2Q. Each unit transacted results in a $Q external benefit. What is the deadweight loss from the perfectly competitive market without taxes or subsidies?The market for plasticans is perfectly competitive. Market Supply is given by Q=5P and Market Demand is given by Q=462-2P. Each extra unit of plastican produced imposes a negative externality of $6. What is the (absolute value of) Deadweight Loss due to the externality? Enter a number only, drop the $ sign. Do NOT include a negative sign.Market demand is MWTP= 76 - 2Q. Market supply is MC = 12 + Q. Each unit transacted results in a $Q external cost. How many units does the market produce more than the efficient quantity?
- Draw a supply curve and describe the external factors that determine supply.Explain the measures used by the government to correct each of the following sources of market failure: (i) demerit goods (ii) Negative externalityA market for a good contains a negative production externality. The following functions describe the market: MPB = 171 - 0.15Q MPC = 13 + 0.1Q MEC = 19 Currently there is no tax. Calculate the benefit if the government adds a tax of $8 per unit.
- Alcohol taxes that are used by government as an incentive for distillers and beer wholesalers to cut back on their alcohol sales which create external costs are called Sales taxes a. Marketable permits Ob. Subsidies C. Pigouvian taxes Od.Assume integer quantities. Assume the following supply and demand schedules for a perfectly competitive market without externalities. 1 3 4 6 MWTP $32.50 $27.50 $6 $25.50 $12 $20.50 $12.50 $7.50 $4.50 MC $2 $16 $21 $30 $32 What is total surplus in equilibrium? Round to two decimal places and do not include the currency symbol. If your answer is $1.125, enter 1.13.Explain the measures used by the government to correct each of the following sourcesof market failure :(i) demerit goods(ii) Negative externality Explain the concept of market failure.
- Explain a positive and negative externality that you have recently consumed. Please relate your answer to the characteristics of elasticity. Why does the government have to get involved when an externality is present in the market?Explain how subsidies provided by the government to producers solve their externalitiesAssume there is a positive externality associated with having a tertiary education. Is the deadweight loss from the subsidy increased or decreased with the introduction of the positive externality? Why?