(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.

Expert Solution

Rahul Sunny answered 1 year ago

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.

What is the efficiency condition for a public good? What is the condition that describes output if the public good is delivered privately?

What is the efficiency condition for a public good? What is the condition that describes output if the public good is delivered privately? What is free riding? How might free riding lead to even less private provision of public goods?

To achieve optimal provision of public goods, the, a. market should be allowed to arrive at...

To achieve optimal provision of public goods, the, a. market should be allowed to arrive at an equilibrium without government intervention. b. Government must limit the provision of the goods. c. government must tax producers of the goods. d. government must either provide the goods or subsidize their production.

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?

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

Question 1 1) What is true for a public good? a. it is provided in optimal...

Question 1 1) What is true for a public good? a. it is provided in optimal amounts by the private sector b. it is diminishable and excludable c. it can only be provided by the government d) it is either provided by the government or can be by the private sector if it is excludable 20 points Question 2 2) A negative externality results in: a. too much of the good or service being provided b. too little of the...

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?

⦁ Theoretically, which rule do we use to determine optimal production quantity. ⦁ (1p) Write down...

⦁ Theoretically, which rule do we use to determine optimal production quantity. ⦁ (1p) Write down the formula

Explain what determines the "optimal" amount of a public good and how this concept of optimality...

Explain what determines the "optimal" amount of a public good and how this concept of optimality can change over time (as we elect new and different leaders). If you use any other sources, be sure to cite them within the text as well as provide a bibliographical citation at the end. Provide one "unique" (i.e. don't use one that a classmate has already used!) example of the free rider problem that you have seen in your lives. From this example,...

Please write an essay about the public provision of education. Why should the government be involved...

Please write an essay about the public provision of education. Why should the government be involved in education? In your own words, explain the advantages and disadvantages of the voucher system. Would you suggest such a system to Ministry of Education in Quebec? Explain why or why not.

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