3 A product has the following private costs, private benefits, and external costs PC 10 0 20 PB 60 0 30 Externality 2 a Find the private quantity and price and the socially efficient quantity and price b What is the deadweight loss at the private equilibrium in this market What is the total external cost at the private equilibrium c If the government imposes a quantity constraint at the socially efficient quantity, what is the consumer surplus, producer surplus, and total external cost if the lowest cost producers are able to produce How many producers would want to produce at the market clearing price with the quantity constraint, but can't d Now the economy expands so that the private benefit becomes PB 70 0 30 The private cost curve and the externality stay the same What is the new socially efficient quantity and price What is the deadweight loss if the government doesn't change the quantity constraint from your answer in fe) e As in part d, the economy expanded so that the private benefit becomes PB 70 0 30 (the same as question dy 3 A product has the following private costs, private benefits, and external costs PC 10 0 20 PB 60 0 30 Externality 2 a Find the private quantity and price and the socially efficient quantity and price b What is the deadweight loss at the private equilibrium in this market What is the total external cost at the private equilibrium c If the government imposes a quantity constraint at the socially efficient quantity, what is the consumer surplus, producer surplus, and total external cost if the lowest cost producers are able to produce How many producers would want to produce at the market clearing price with the quantity constraint, but can't d Now the economy expands so that the private benefit becomes PB 70 0 30 The private cost curve and the externality stay the same What is the new socially efficient quantity and price What is the deadweight loss if the government doesn't change the quantity constraint from your answer in fe) e As in part d, the economy expanded so that the private benefit becomes PB 70 0 30 (the same as question dy

Question

3  A product has the following private costs, private benefits, and external costs  PC   10 0 20 PB 60 0 30 Externality   2 a  Find the private quantity and price and the socially efficient quantity and price  b  What is the deadweight loss at the private equilibrium in this market  What is the total external cost at the private equilibrium  c  If the government imposes a quantity constraint at the socially efficient quantity, what is the consumer surplus, producer surplus, and total external cost if the lowest cost producers are able to produce  How many producers would want to produce at the market clearing price with the quantity constraint, but can't  d  Now the economy expands so that the private benefit becomes  PB 70 0 30 The private cost curve and the externality stay the same  What is the new socially efficient quantity and price  What is the deadweight loss if the government doesn't change the quantity constraint from your answer in fe)  e  As in part d, the economy expanded so that the private benefit becomes PB 70 0 30 (the same as question dy 3  A product has the following private costs, private benefits, and external costs  PC   10 0 20 PB 60 0 30 Externality   2 a  Find the private quantity and price and the socially efficient quantity and price  b  What is the deadweight loss at the private equilibrium in this market  What is the total external cost at the private equilibrium  c  If the government imposes a quantity constraint at the socially efficient quantity, what is the consumer surplus, producer surplus, and total external cost if the lowest cost producers are able to produce  How many producers would want to produce at the market clearing price with the quantity constraint, but can't  d  Now the economy expands so that the private benefit becomes  PB 70 0 30 The private cost curve and the externality stay the same  What is the new socially efficient quantity and price  What is the deadweight loss if the government doesn't change the quantity constraint from your answer in fe)  e  As in part d, the economy expanded so that the private benefit becomes PB 70 0 30 (the same as question dy

Accepted Answer

The Answer is in the image, click to view ...

Question

3. A product has the following private costs, private benefits, and external costs: PC - 10+0.20 PB-60-0.30 Externality = 2 a. Find the private quantity

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Investing For Women Smart Strategies To Start Investing Now With Confidence Low Risk And Minimal Effort

Students also viewed these Finance questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question