Question 40 (1 point) Figure: Correcting for Market Failure Price per unit S2 P2 P. D W R Quantity (per period) Reference: Ref 17-7 Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Use Figure: Correcting for Market Failure. There is an external cost in the market illustrated in the figure, and the two upward- sloping lines reflect private and social marginal costs. When the government intervenes to correct for the external cost, the output will from toQuestion 38 (1 point) Figure: Traffic Lights in Plymouth Marginal benefit, marginal cost $12,000 10,000 8,000 6.000 4,000 2.000 MC MSB 0 8 10 12 Number of traffic lights Reference. Ref 17-1 Figure: Traffic Lights in Plymouth (Figure: Traffic Lights in Plymouth) Use Figure: Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffic light. If the government provides traffic lights, the socially efficient quantity is:Question 37 (1 point) Table: Production Possibilities for the United States and Canada U.S. Production Possibilities One Possibility Another Possibility Quantity of Cars (millions) 10 C Quantity of Lumber (millions of board feet) 0 10 Canada Production Possibilities One Possibility Another Possibility Quantity of Cars (millions) ON Quantity of Lumber (millions of board feet) 12 Reference: Ref 8-3 Table: Production Possibilities for the United States and Canada (Table: Production Possibilities for the United States and Canada) Use Table: Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. If these nations trade, Canada has the comparative advantage in and should trade to the United States in exchange forQuestion 41 (1 point) Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries (units) (units) United States 80 40 Mexico 60 180 Reference: Ref 8-2 Table: Production Possibilities for Machinery and Petroleum (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. In the United States the opportunity cost of producing 40 units of machinery is ___ units of petroleum