Do you consider the public good provision problem as an externality problem? Explain.

Do you consider the public good provision problem as an externality problem? Explain.

Expert Solution

Rahul Sunny answered 2 years ago

4. a. Consider the private provision of public good model with H identical consumers. What is...

4. a. Consider the private provision of public good model with H identical consumers. What is the impact on the equilibrium of increasing the population to H+1 by adding another identical consumer? Does this always increase the welfare of the initial H consumers? b. Can the same conclusion be reached if the consumers are not identical?

Consider the market for a good that has a positive externality and that is produced by...

Consider the market for a good that has a positive externality and that is produced by a monopolist. How does the amount produced in the absence of any government policy compare with the amount that would maximize the total social surplus? Identify the total private surplus, external benefits, and total social surplus both at the level of production that occurs without government intervention and at the level of production that maximizes the total social surplus. What is the deadweight loss...

i. Could the provision of public good be privatized? ii. Why is it the case that...

i. Could the provision of public good be privatized? ii. Why is it the case that prisons are run by the state? iii. Sometimes in the presence of externalities, the market failure can be solved through monetary compensation between the parts: who receives the compensation? When is an agreement between parts not possible? iv. Why have many governments recently been privatizing some natural monopolies?

Write down the Samuelson’s condition for the optimal provision of a public good. Use an example...

Write down the Samuelson’s condition for the optimal provision of a public good. Use an example to explain your understanding of it.

(3). Write down the Samuelson’s condition for the optimal provision of a public good. Use an...

(3). Write down the Samuelson’s condition for the optimal provision of a public good. Use an example to explain your understanding of it.

Vickrey-Clarke-Groves mechanism seems to be a good solution to the public good problem. But we do...

Vickrey-Clarke-Groves mechanism seems to be a good solution to the public good problem. But we do not see a frequent application of it in real world. What could be the reason(s) of this situation? Do some search, explain the weaknesses of the mechanism.

Question 9 (2.5 points) Consider a good for which there is a positive externality. If this...

Question 9 (2.5 points) Consider a good for which there is a positive externality. If this good were provided by the market, then Question 9 options: 1) trade would have to take place at a price of $0 2) less than the efficient amount of the good would be traded 3) every single unit of the good for which any consumer has a positive reservation price would be traded 4) None of the above answers are correct Question 10 (2.5...

:Please write an essay about the public provision of employment insurance and pensions. Do you think...

:Please write an essay about the public provision of employment insurance and pensions. Do you think employment insurance increases unemployment? Explain why or why not. List the research that has been done in this area. Please provide discussion on the labor market effects of EI (including direct effects and systemic effects). Please explain how the public pension system may cause inefficiency problems.

State if the following government activity is/is not associated with adjustment to an externality or provision...

State if the following government activity is/is not associated with adjustment to an externality or provision of a public good. Explain your answer in detail. a) Government of Saskatchewan provides weather forecasts free of charge b) Government increases seats at post-secondary institutions c) Canada’s day fireworks celebration d) Prohibition of smoking in public places e) Imposition of taxes on tobacco smokers

What is meant by the free-rider problem? How does it relate to the provision of public...

What is meant by the free-rider problem? How does it relate to the provision of public goods? How can it be over-come?

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