Benefit of the activity greater than or equal to the margin

Assignment Help Microeconomics
Reference no: EM13319780

What type of externality (positive or negative) is present in each of the following examples? Is the marginal social benefit of the activity greater than or equal to the marginal benefit to the individual? Is the marginal social cost of the activity greater than or equal to the marginal cost to the individual? Without intervention, will there be too little or too much (relative to what would be socially optimal) of this activity?

a. Mr. Chau plants lots of colorful flowers in his front yard.

b. Your next-door neighbor likes to build bonfires in his backyard, and sparks often drift onto your house.

c. Maija, who lives next to an apple orchard, decides to keep bees to produce honey.

d. Justine buys a large SUV that consumes a lot of gasoline.

Reference no: EM13319780

Questions Cloud

What would you recommend that the monopolist do to maximize : A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95
Explain how many moles of naoh must be added to 0.550 l : How many moles of NaOH must be added to 0.550 L of 0.191 mol/L HC3H5O2(aq) to obtain a solution with pH=4.7? Assume the temperature is 25oC. (For HC3H5O2, pKa=4.89 at 25oC).
What is this grand prize really worth : A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate of 6%.
Utilize standard enthalpies of formation to determine : Use standard enthalpies of formation to determine Horxn for: 3NO2(g) + H2O(l) ? 2HNO3(aq) + NO(g) Enter in kJ. -133.5 Find the change in internal energy for this reaction.
Benefit of the activity greater than or equal to the margin : What type of externality (positive or negative) is present in each of the following examples? Is the marginal social benefit of the activity greater than or equal to the marginal benefit to the individual?
Draw the demand and supply curves : Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true? What are the equilibrium price and quantity of tickets?
Is it a good idea for the monopolist to produce the 9th unit : A monopolist knows that in order to expand the quantity of output it produces from 8 to 9 units that it must lower the price of its output from $2 to $1. Calculate the quantity effect and the price effect
Explain the ph at the points in the titration : Calculate the pH at the points in the titration of 40.00 mL of 0.425 M NH3 for the reaction below. NH3(aq) + HNO3 ? NH4+(aq) + NO3?(aq) For NH3, Kb = 1.8x10-5. Enter your answer with 2 decimal places. Enter scientific notation as 1.23E4
Explain the ph at the half-neutralization point : The pH at the half-neutralization point. Enter only numbers in your answer. (Do not include units.) (d) The pH at the equivalence point.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  The city of rochester is thinking of expanding its airport

The City of Rochester is thinking of expanding its airport. The expansion will increase travelers' consumer surplus by $100 and airlines' producer surplus by $200, while costing taxpayers only $50. However, the expanded airport will be much noisier.

  Consumers to make optimal intertemporal decisions

what are the trade offs involved between current and future consumption/production? In the absence of government intervention, would we expect the consumers/producers to make optimal intertemporal decisions?

  Under what economy-wide economic conditions

The US treasury isn't the only issuer of bonds. Corporations also issue bonds that have future payment structures like U.S. Treasuries. Of course, unlike the federal government, corporations can go bankrupt, leaving their bondholders unable to col..

  Maximise profit for monopoly

how many units should be produced by plant 1 and plant 2 to maximise profit for this monopoly

  Compare the present worth of the depreciation of the system

Your civil engineering consulting firm is going to purchase a new computer-aided design (CAD) system at a cost of $100,000. The CAD system will have no salvage value at the end of its useful life of 5 years.

  Cause of the aggregate demand curve to shift to the right

Assume that the market for Mexican pesos begin in equilibrium. Then, the Mexican economy experiences a severe recession. Because of the recession, the Mexican companies lower their prices. As a result of the recession and lower prices in Mexico.

  Swot of the franchise

you must identify a franchise that is relatively new (less than 10 years old and fewer than 25 locations in Canada).  You must then evaluate the attractiveness of the franchise for an identified location.  The evaluation should include: Presentation ..

  Majority of physicians specialize in genera-family practice

Which of the following statements about the distribution of physicians among specialties is true in the United States?a) The majority of physicians specialize in general/family practice b)There are twice as many generalists as there are specialists

  Development of value and distribution theories

A development of value and distribution theories. Detailed analysis of the reactions of consuming and producing units

  What interest rate would this be a fair deal

Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $33,000 per year forever.

  What would the purchase price

A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8% is paid quarterly. If an investor desires to earn 12% nominal interest (compounded quarterly) on $10,000 worth of these bonds, what would the pur..

  Calculate the present discounted value

Calculate the present discounted value of each career path at a discount rate of 5% and at a discount rate of 15%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd