Exam 10: Externalities

Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each to emit 100 tons of pollution.If it costs $5,000 for Firm A to eliminate 100 tons of pollution and it costs Firm B $6,000 to eliminate 100 tons of pollution,then

The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC). -The figure above shows that at the unregulated market equilibrium,marginal social benefit ________ marginal cost,and the number of students enrolled is ________.

For a product with an external cost,the supply curve

When property rights are assigned and transactions costs are low,

Public provision

The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC). -Using the figure above,suppose a subsidy of $15,000 per student is provided to private colleges.When the market is in equilibrium,marginal social benefit ________ marginal cost,and the number of students enrolled is ________.

The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the marginal

If a product has zero external costs,then

-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt.

-The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve.The difference between the marginal cost curve and the marginal social cost curve equals

The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC). -The figure above shows that the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students.

The marginal social cost of producing a good or service is the

A marketable permit

-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.If the market is competitive and unregulated,the equilibrium quantity is ________ billion kilowatt hours per day and the efficient quantity is ________ billion kilowatt hours per day

In a market with an external cost,government action

For a firm,its labor costs are

The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?

The difference between private cost and social cost is that

Marginal social cost is the

When people decide whether or not to get a flu vaccination,they ignore the ________ and as a result ________.