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?

Expert Solution

Rahul Sunny answered 1 year ago

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b....

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b. What is a “free rider problem,” and what challenge does it pose for the private production of public goods and services? c. How is the demand for a public good different from the demand for a private good? d. Outline the role government plays in the provision of public goods.

Define Public goods. Why is it that the provision of public goods is problematic under collective...

Define Public goods. Why is it that the provision of public goods is problematic under collective action? (not less than 1000 words)

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

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.

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?

Question 3 [20 marks] (i) What is a public good and why does the market fail...

Question 3 [20 marks] (i) What is a public good and why does the market fail in the presence of a public good? (5) (ii) Explain how we can resolve this issue where the existence of a public good causes market failure. (5) (iii) Why will private markets produce an inefficient output of a public good? Explain how the efficient level of a public good is determined. (5) (iv) Education is frequently cited as a source of external benefits. In...

A tax on the sale of a good results in (i) a deadweight loss and (ii)...

A tax on the sale of a good results in (i) a deadweight loss and (ii) the burden of the tax being shared equally between the buyer and the seller. True or false? Explain and illustrate your answers.

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.

For each case below, find the missing amount. Case I Case II Case III Beginning inventory...

For each case below, find the missing amount. Case I Case II Case III Beginning inventory of finished goods $15,000 $8,000 Cost of goods manufactured during period 420,000 92,000 Ending inventory of finished goods 95,000 7,000 26,000 Cost of goods sold $411,000 $308,000

Question