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No AI stuff please, put it in the most laymen terms ever. Can you color coat graphs to make sense? Thank you! [1 point] Externalities
No AI stuff please, put it in the most laymen terms ever. Can you color coat graphs to make sense? Thank you!
[1 point] Externalities Hypothesis. Imagine that the production of your product creates an externality. Assume one type of externality. 8.1.[05 points] Give an example of which type of negative externality your company could create (verbal answer). 8.2. [0.5 points] Calculate the marginal social benefit and cost? Draw the marginal social benefit curve and the marginal social cost curve. Use your diagram to determine the socially optimal quantity (numerical, graphical and verbal answers). [1 point] International trade Hypothesis. Consider opening the market to international trade. Assume the domestic price is that of the initial equilibrium [Assume also that there is only one good produced in both economies and that you are doing a static analysis of a partial equilibrium model]. 9.1. [0.5 points] Ifthe world price of your product is below your initial equilibrium price, will the country decide to be an importer or an exporter of the good? (numerical, graphical and verbal answers). 9.2. [0.25 points] Compute the net gain from trade and locate it in the figure. Are producers better off with trade? And consumers? (numerical, graphical and verbal answers) 9.3. [0.25 points] How does international trade affect your company? (verbal answer) [1 point] Conclusion. 10.1. [0.5 points] Explain which is the most beneficial hypothetical situation for your company, for consumers and for the society's welfare (verbal answer). 10.2. [0.5 points] Explain the reasons for your personal preferences (verbal answer)Step by Step Solution
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