What are external costs? When external costs are present, will market allocation result in too much...

What are external costs? When external costs are present, will market allocation result in too much or too little output of the good relative to the ideal efficiency level?

What is a public good? Provide an example, and explain why it is a public good.

Typed answers only

Expert Solution

External Cost:- External cost is a cost when it is imposed on third party when goods and services are produced and consumed.

When external cost is positive market allocation is high when negativity there is under allocation of resources because over and under allocation, cost of production whether high or low.

Public good:- It is a good which is non-excludable and non-rivalrous. Individuals cannot be excluded by using this and enjoyed without paying for it.

Elasticity, park,defense, light house,clean air etc. are the perfect examples of public goods. Every one can use this equally and this product or services are non excludable. No one can buy this product for their personal use.

Public good:- It is a good which is non-excludable and non-rivalrous. Individuals cannot be excluded by using this and enjoyed without paying for it.

Elasticity, park,defense, light house,clean air etc. are the perfect examples of public goods. Every one can use this equally and this product or services are non excludable. No one can buy this product for their personal use.

Rahul Sunny answered 2 hours ago

If a good generates an external cost, the market will produce: a.) Too much of the...

If a good generates an external cost, the market will produce: a.) Too much of the good. b.) Some of the good but not enough. c.) None of the good. d.) An optimal amount of the good.

With external costs, is the competitive output too large or to small? With external benefits? Why...

With external costs, is the competitive output too large or to small? With external benefits? Why does this lead to an inefficient allocation of resources?

What does it mean when there is too much talent on a team?

Describe how an over allocation of resources results when negative externalities costs are present and how...

Describe how an over allocation of resources results when negative externalities costs are present and how this can be corrected by government action.

When there are market externalities, the market allocation of resources will not be optimal. Group of...

When there are market externalities, the market allocation of resources will not be optimal. Group of answer choices True False

1. When particular imposition becomes a standard when a standard that there is too much money...

1. When particular imposition becomes a standard when a standard that there is too much money circulation? a. fix and establish hedge facilities b. increase interest rate c. popularize equity market d. all of the items mentioned 2. When a financial institution grab the opportunity to be extended a credit at high interest rate for reason that it can lend it too at higher interest, we are in an environment of a. bubble economy b. growing economy c. security motivated...

What is the role of government when external benefits or costs occur? a. The government should...

What is the role of government when external benefits or costs occur? a. The government should not become involved in the market and should leave it up to market participants to settle any issues. b. The government should provide subsidies to those with low income in the case of external costs. c. The government should require producers who impose external costs to reduce their output and to increase their output in the case of external benefits. d. The government...

Question

What are external costs? When external costs are present, will market allocation result in too much...

Solutions

Expert Solution

Related Solutions