What are external costs? When are they most likely to be present? When external costs are present,

Question:

What are external costs? When are they most likely to be present? When external costs are present, what is likely to be the relationship between the market output of a good and the output consistent with ideal economic efficiency?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

See More Books

Question Posted: Oct 06, 2023 05:11 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Job descriptions: In determining who will be responsible for what duties, you are to compile a Job description for the Assistant Front Office Manager, The Front Desk Agent, The Reservations Agent and...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Calculate the IRR for the following projects. a. An initial outflow of $15,220 followed by inflows of $5,000, $6,000, and $6,500. b. An initial outflow of $47,104 followed by inflows of $16,000,...
Crowe Excavation Company is planning an investment of $235,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years. Customers will be charged $98 per hour...
With the assignment of factors A, B, C, and D to columns 1, 2, 3, and 4, respectively, of an L9 orthogonal array, the output is as follows for another replication of the nine experiments: Determine...
The following table gives the vapor pressure of water for various temperatures, previously reported in Exercise 5.2. Exercise 5.2 The following table gives the vapor pressure of water for various...
Sam wants to help his brother, Lou, start a new business. Lou is a capable auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be...
How do decision makers determine the receivables turnover based on the information reported by a company?
Elementary education is obviously a public good. After all, it is provided by the government. Evaluate this statement.
If sellers of toasters were able to organize themselves, reduce their output, and raise their prices, how would economic efficiency be affected? Explain.
In a fruit basket, there are five mangos, of which two are spoiled. If we were to randomly pick two mangos: (a) What would be our sample space? (b) What is the probability that both mangos are good?...
How does one find the total and current amount of funding needed by a start-up?
What are the main differences between the Venture Capital Method and the Discounted Cash Flow Method?
What factors determine the allocation of shares within a founder team?
Why should entrepreneurs use a model to perform valuations? What about investors?
What are the pros and cons for splitting equity equally among all founders?
During the year ended December 31, 2017, Roxana Corp. (Roxana) had the following equity-related transactions and economic events. On December 31, 2016, the balance in Roxana's common shares account...
Refer to Exercise 8.S.I. Construct a scatterplot of the data. Does the appearance of the scatterplot indicate that the pairing was effective? Explain. Exercise 8.S.I. A volunteer working at an animal...
Newton Manufacturing had the following transactions for the month of March. Newton uses the perpetual inventory system. Mar 1 Bought $ 7 , 4 0 0 worth of inventory on account. Mar 2 Sold products for...
We often pay premiums for our insurance policies for years before actually having a loss that is covered by the insurance. When a loss finally happens, there might be an inclination to "pad" the...
Meteor, Inc. recognized revenue of $ 6 0 0 for the current year, of which $ 1 2 0 was received in cash. The rest of the cash will be collected in the following year. The company incurred expenses of...

What are external costs? When are they most likely to be present? When external costs are present,

Question:

Step by Step Answer:

External costs also known as negative externalities refer to the costs or negative consequences of an economic activity that are not directly borne by ...View the full answer

Macroeconomics Private And Public Choice

Students also viewed these Business questions