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If the government attempts to internalize these externalities, what are the methods available to the government to correct market disequilibrium? An anti- smoking organization provides
- If the government attempts to internalize these externalities, what are the methods available to the government to correct market disequilibrium?
- An anti- smoking organization provides the following information about helping a city with one million people getting rid of pollution.
Price of membership | Number of members | Marginal external benefit per member | Marginal cost per member |
10 | 180,000 | 20 | 90 |
15 | 160,000 | 30 | 75 |
20 | 140,000 | 40 | 60 |
25 | 120,000 | 50 | 45 |
30 | 100,000 | 60 | 30 |
35 | 80,000 | 70 | 15 |
- Derive the demand curve for the anti-smoking
- Derive the marginal social benefit curve for the anti-smoking organization
- What is the equilibrium competitive price for membership and number of members?
- What is the marginal social benefit of membership to the community?
- To achieve allocative efficiency, how many memberships are required?
- What is the marginal social benefit for achieving allocative efficiency?
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