Consider a competitive market in which the MPB = 129–3q and the MSC =3q. In this market, however, there is a positive consumption externality of $50 per unit consumed. What is the efficient level of output in this market?

Consider a competitive market in which the MPB = 138–4q and the MSC= 3q. In this market, however, there is a positive consumption externality of $74 per unit consumed. What is the DWL that results in the market equilibrium?[Round your answer to two decimal places when needed]

Consider an economy with three consumers, each with a marginal benefit for a public good of MB = 10–q. If the marginal cost of providing the good is $17 per unit, what is the efficient level of output? [Round your answer to 2 decimal places when needed]

Consider a good with external costs. Which of the following best describes why the market does not produce an allocatively efficient amount?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThe marginal benefit to consumers exceeds the marginal private cost of production and the marginal social cost of production.bThe marginal social cost exceeds the marginal social benefit.cThe marginal social benefit exceeds the marginal social cost.dThe marginal private cost of production and the marginal social cost exceed the marginal benefit to consumers.Unanswered2 attempts left

What can you say about the allocatively efficient level of output compared to the new equilibrium market quantity after the tax (that is the same size as the external cost per unit of output) on producers described above is imposed?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThey are the same.bThe equilibrium market quantity is greater.cThe allocatively efficient quantity is greater.dYou cannot tell from the information given.

The rational rule for a perfectly competitive market is to produce:Question 5Answera.at the output where the efficient quantity equals the benefit.b.less if the marginal benefit exceeds the marginal cost.c.the output level with minimum average cost and buy the quantity with the maximum benefit.d.more if the unit's marginal benefit exceeds its marginal cost.