[Solved] The Table Below Shows the Market for Private Long-Term-Care Beds

a)Give the definition of "externality" and indicate why externalities can result in a failure to achieve equality between social marginal cost and social marginal benefit.Demonstrate your answer with a graph showing external costs. b)What are the 3 reasons why governments decide to provide quasi-public good?

The following table shows the marginal private cost (MPC)and the marginal social cost (MSC)of a chemical factory. Answer the following questions: (1)What is the marginal cost of the factory's externality? Is it constant at all quantities? (2)If the factory is a perfectly competitive firm and is not required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130? (3)If the factory is a perfectly competitive firm and is required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130? (4)Draw a graph illustrating your answers.

Big Construction Company wants to create a new housing development near Big City.Animal rights activists are adamantly opposed to the housing development since the proposed site would destroy the natural habitat of a rare spotted duck family.How would an economist analyze this situation? Illustrate your answer with a supply and demand diagram.What would be the most difficult part of implementing your plan?

The figure below shows the demand and supply of a certain product.

The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park which are sold by the government.Each permit allows the owner to release 1 tonne of pollutants into the atmosphere. a)If no fee for a pollution permit were charged,and assuming a straight-line demand curve,what quantity of pollutants would be discharged into the atmosphere? b)Suppose government were to set a fee of $6 per permit.What quantity of pollutants would now be dumped and what would be the revenue of government. c)Suppose that new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for permits drops by 500 tonnes.Assuming that government holds the permit fee at $6,what quantity of pollutants would now be dumped,and what would be the total revenue received by government? d)After the change of demand in c),what would happen if instead of maintaining the fee at $6,government wants to maintain the same level of pollutants as in b).What fee would have to be charged and what would be the new revenue?

Differentiate between productive efficiency and allocative efficiency.

Differentiate between a quasi-public good and a public good?

State three reasons why the government provide quasi-public goods.

Table 9.1 shows the cost structure for a perfectly competitive firm of which there are a total of 100 in the industry Table 9.1

"If at the present level of output,the price of the product is less than the social marginal benefit,then society would prefer less of this product being produced." Evaluate this statement.