-D (social MB) -S (private MC) --S\' (social MC) “ 12000 11000 8000 4000 3000 Qu

Question

-D (social MB) -S (private MC) --S' (social MC) “ 12000 11000 8000 4000 3000 Quantity (number of light years per period) Question 1: Whenever Rebel Fighters fly their X-wing spaceships, they create pollution from the ships' exhaust. Suppose that the graph above illustrates the marginal benefits and costs of X-wing travel, where S represents the private supply curve (private marginal costs) and S represents the social supply curve and reflects the full social costs (social marginal costs). D represents the full social marginal benefits of X-wing travel. Suppose the Rebel Fighters are currently flying their X-wing ships for 6 light years per period. At this level of flight, the marginal external cost is_ per period C 1 $1,000 C2) $2,000 C 3) $3,000 4) $4,000 Question 2: Whenever Rebel Fighters fly their X-wing spaceships, they create pollution from the ships' exhaust. Suppose that the graph above illustrates the marginal benefits and costs of X-wing travel, where S represents the private supply curve (private marginal costs) and S represents the social supply curve and reflects the full social costs (social marginal costs). D represents the full social marginal benefits of X-wing travel. In the absence of government intervention, the amount of X-wing travel will be C 1) 3 light years per period C 2) 4 light years per period C 3) 5 light years per period C 4) Between 4 and 5 light years per period Question 3: Whenever Rebel Fighters fly their X-wing spaceships, they create pollution from the ships' exhaust. Suppose that the graph above illustrates the marginal benefits and costs of X-wing travel, where S represents the private supply curve (private marginal costs) and S" represents the social supply curve and reflects the full social costs (social marginal costs). D represents the full social marginal benefits of X-wing travel. The socially efficient amount of X-wing travel is C 1) 3 light years per period C 2) 4 light years per period C 3) 5 light years per period C 4) Between 4 and 5 light years per period

Explanation / Answer

1) 3000 because social cost=9000 and pvt. Cost=6000 thus marginal external cost=3000

2)5light year per period because pvt. Marginal cost=pvt. Marginal benefit

3)4 light years per period because for socially efficient point, marginal social cost=marginal benefit

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.