ECON 102 Homework 11 Answer (Penn State University)

ECON 102 Homework 11 Answer (Penn State University) Question 1 When there is a negative production externality, the Question 2 Consider a market with a negative production externality. This type of market Question 3 A profit maximizing firm in a competitive market with a negative production externality will produce the quantity of output where Question 4 Which of the following is a solution to the problem of externalities? Question 5 When an externality is internalized, Question 6 Norman and Jack are roommates. Jack is tidy and Norman is messy. There are no laws that prohibit messiness. The benefit of a messy house is worth $1000 to Norman, but the messy house imposes a $500 cost on Jack. According to the Coase theorem, an efficient solution is Question 7 When a good is rival it means that Question 8 Consider the table above. How much is society willing to pay for the 4th unit of the public good? Question 9 It is difficult to provide the efficient quantity of a public good since efficiency would require that the government Question 10 The classic case of adverse selection is the market for