Question: A Markets are inefficient when positive production externalities are present because O private costs of production exceed social costs of production when the market

A Markets are inefficient when positive production externalities are present because O

A Markets are inefficient when positive production externalities are present because O private costs of production exceed social costs of production when the market is in equilibrin social benefits of consumption exceed private benefits of consumption when the market is in equilibrium O social costs of production exceed private costs of production when the market is in equilibrivan O private benefits of consumption exceed social benefits of consumption when the market is in equilibrium

Step by Step Solution

★★★★★

3.42 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below Markets can become inefficient when certain conditions are met Heres a breakdown of the s... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Explain what the term HACCP refers to. Develop your own HACCP plan-from the time you purchase a pound of ground beef until it shows up as a hamburger on your plate.

To demonstrate the ability to represent data, such as sets, using bit strings and to perform the appropriate logical operations on those representations to compute the desired results. This program...

Review the concept of externalities from Chapter 5, page 148. If a market is a monopoly, will a negative externality in production always lead to production beyond the level of economic efficiency?...

Network Externalities and the Battle between Microsoft and Apple: Many markets related to technology products operate in the presence of network externalities because the value of such products to...

need the code for this circuit using arduino Simple Arduino Digital Clock Without RTC using a speaker. i posted this question twice please write code with comments included explaining code

X y other issues no covered above ontact Insearch Exams department via:Email: Exams@insearch.edu.au or Call +61 02 9218 4946 Question 10 1 pts The price of product X is reduced from $45 to $20 and,...

Markets are often inefficient when negative production externalities are present bec O A. production externalities lead to consumption externalities O B. private costs exceed social costs at the...

Why do private markets fail to reach a socially optimal level when negative externalities are present? Select one: Private benefit exceeds social benefit at the private market solution Social benefit...

Section 1 1) Market failure is a situation in which negative economic profits persist in the long run. the market does not provide the ideal or optimal amount of a particular good. negative economic...

Positive externalities result in markets producing: a . Less than the socially optimal quantity b . Exactly the socially optimal quantity c . More than the socially optimal quantity d . An efficient...

answer all Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 3 percent. The future value of the $500 after 1 year is a. $485.44. Question: You...

Stock value vs. changes in r, and g D = $2, r, = 10%, and g = 5%: Po=D / (r-g) = $2 / (0.10 -0.05) = $40. rs 9% 10% 11% 0 What if r, or g change? g 4% Po= 13% What would Po be if g = o? The dividend...

Given two complementary strands of DNA containing 1.03 x 102 base pairs each, calculate the ratio of two separate strands to hydrogen-bonded double helix in solution at 2.98 x 102 K. (Hint: The...

Note to student: Do not round off values in the calculations. Maintain precision by rounding all intermediate and final answers to two decimal places to prevent any impact on the final result....

Calculate the expected reimbursement for the following DRGs. Community Hospital has a Labor amount of $3,260; a wage index of 0.8934; and a non-labor amount of $2,000 MS DRG DESCRIPTION Relative...

Prepare a posting in which you summarize your experiences in this course and discuss any insights you have gained in the history of consumption culture. Also, discuss how this information can be...

The Ethics of Belief" by W.T Clifford. Write an essay that describes his attitude towards belief. Be sure to address the following issues: 1. Why does Clifford say what we believe is not merely a...

The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below: Assets Cash $240,000 Other Assets 300,000 Total Assets $540,000 Liabilities & Equities...

Suppose the price of 1-year maturity zero-coupon bonds with face value $1000 is $950 and the price of 2-year zeros with $1000 face value is $880. (a) Compute the forward rate in the second year. (b)...

Which approach supports the principle of making a promotion a possibility? A. Work efficiently to be a high performer in your current position O B. Develop the skills needed for the position you want...

What is producer surplus? How does producer surplus change as the equilibrium price of a good rises or falls?

As discussed in this chapter, real GDP per capita in the United States grew from about $6,000 in 1900 to about $50,010 in 2014, which represents an average annual growth rate of 1.9 percent. If the...

Why was De Beers worried that people might resell their old diamonds? How did De Beers attempt to convince consumers that previously owned diamonds were not good substitutes for new diamonds? How did...

5.5 Describe how people around the world may bolster their self-esteem.

3. I am able to do things as well as anyone else.

1. What does contemporary research say about culture, self-esteem, and self-enhancement?