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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 11
The following table shows the quantities of car alarms demanded and supplied per year in a town:
Without drawing a graph,determine the efficient quantity in this market under each of the following assumptions:
a. Each car alarm sold creates a negative externality (noise pollution)that causes $100 in harm to the public.
b. Each car alarm creates a positive externality (reduced law enforcement costs)that provides $100 in benefits to the public.
Without drawing a graph,determine the efficient quantity in this market under each of the following assumptions:a. Each car alarm sold creates a negative externality (noise pollution)that causes $100 in harm to the public.
b. Each car alarm creates a positive externality (reduced law enforcement costs)that provides $100 in benefits to the public.
Explanation
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Externalities affect the market outcomes...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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