The graph shows the demand for university education. The marginal cost of educating a student is a constant $6,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students. ... Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students that shows the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ a student. >>> Remember that the price given on the y-axis is in thousands of dollars. 10 9- 8- 7- 6- 5- 4- 3- 2 1- Price and cost (thousands of dollars per student per yea 0 S-MC 10 20 30 40 50 Students (thousands per year) >>> Draw only the objects specified in the question. D-MB 60

The graph shows the demand for university education. The marginal cost of educating a student is a constant $6,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students. ... Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students that shows the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ a student. >>> Remember that the price given on the y-axis is in thousands of dollars. 10 9- 8- 7- 6- 5- 4- 3- 2 1- Price and cost (thousands of dollars per student per yea 0 S-MC 10 20 30 40 50 Students (thousands per year) >>> Draw only the objects specified in the question. D-MB 60

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 5CQ

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ASAP plz Why don't people/stores make different decisions? Cost is a factor: a case of foam take-out containers costs $25, compared with $58 for paper and recyclable-plastics. How does this affect the firm's profit? Are consumers willing to pay more? Negative externality Consider the demand and supply given above. Suppose there is an external cost given by MEC=5Q. Find social equilibrium price and quantity. Draw a graph and label both private and social equilibrium.
what is an externality? give an example of a postiive externality and an example of negative externality
In his 1960 article, "The Problem of Social Cost," Ronald Coase uses an example of a rancher and a wheat farmer. The problem comes from the rancher's cows crossing over onto the farmer's fields and trampling his crop. For the next problems assume the damage to the farmer's crops is $1,000 a year and the cost of putting up/maintaining a fence is $1,500 a year. 1. The farmer takes the rancher to court and the judge decides putting up a fence is the farmer's responsibility. What is the nature of the externality in this problem? A. the rancher is putting a $1000 cost on the farmer that he is not internalizing. B. the farmer is putting a $1000 benefit on the rancher that is not internalized. C. the rancher is putting a$1500 cost on the farmer that he is not internalizing. D. there is no externality present because rights are defined. 2. After the court decision, will the farmer build a fence? A. Yes B. No C. The rancher will build the fence D. There is not enough information to say 3..…
B. The figure below shows the market for education. 20 S- MSC: 12 MSE D- MD 2 4 10 Quantity (millions of students per yeorl i. 'Education has externalities'. Explain this statement. ii. If the market is competitive and left unregulated, how many students will be enrolled per year? Are the resources allocated efficiently when such number of students are enrolled per year? Explain using the graph above. iii. In the figure above, what kind of government intervention is required to achieve the optimal or efficient number of students? What is the optimal number of students? How much intervention needed to achieve the optimal number of students? luian arc cost lihousa-cs of delan per stdent
The diagram below represents the market for education. Assume that education provides several external benefits. a. Using the diagram, show the social demand curve for this market. Instructions: Use the tool provided 'Social value' to plot this line on the graph. Plot only the endpoints of the line. Tools Supply Private Social value Demand Private Price
This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand 200 500 650 Quantity a) Without any government intervention, what is the market determined price and quantity? b) What is the price of the externality? c) What is the socially optimal price and quantity? d) What should the government do (impose a tax or provide a subsidy) to internalize this externality? What is the amount of the the corrective tax/subsidy needed to be to move the outcome from the market equilibrium to the socially-optimal outcome?
The graph shows the demand for university education. The marginal cost of educating a student is a constant $5,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are public, calculate the tuition that will achieve the efficient number of students. How much will taxpayers have to pay? COC Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that universities charge is $thousand per student. The amount paid by taxpayers is $thousand per student 1804 704 60 504 404 30 20 10 Price and cost (thousands of dollars per student per ye 00 DEMB 79 20 880 10 20 30 40 50 60 Students (thousands per year) >>> Draw only the objects specified in the question
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Price
C. How would you calculate: (1) the total amount of subsidy incurred by the government to socially efficient allocate?
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3:18 Edit X 50 REE 324 - ENVIRONMENTAL ECONOMICS Review Exercise on Market Equilibrium, Market Failure, Externalities and Elasticities 1. Economics of Education. The issue of education is quite critical. The demand for education by society is high. On the other hand, it is demanded that the schools only charge low tuition fees since schools serve a social function. Thus, more often than not, tuition fee ceilings are imposed to assure students of lower prices for this "commodity". Two common solutions are proposed to address the likely problem of excess demand for educational services (ES) in the event of a tuition fee ceiling is imposition: (i) operation of public schools (e.g., free public high school); (ii) government subsidy to private education. where: Find the solutions to the problems below: D=demand for educational services S = supply of educational services Suppose we let: S: TF or P = 1 + 0.5 Q D: TF or P = 15-2Q TF or P = tuition fee or price of education ('000 pesos)…
Explain the PRIVATE COST and SOCIAL COST of education by using graph.