help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Use the following information to answer the next FOUR questions: The markets below show conditions in a perfectly competitive market in which there is some sort of externality Market A Market B S-MSC MSC MSB DEMSB D Quantity Quantity Market Market D S-MSC MSC 1 MSB D DEM58 Quantity Quantity 17

Use the following information to answer the next FOUR questions: The markets below show conditions in a perfectly competitive market in which there is some sort of externality Market A Market B S-MSC MSC MSB DEMSB D Quantity Quantity Market Market D S-MSC MSC 1 MSB D DEM58 Quantity Quantity 17

Economics

Use the following information to answer the next FOUR questions: The markets below show conditions in a perfectly competitive market in which there is some sort of externality Market A Market B S-MSC MSC MSB DEMSB D Quantity Quantity Market Market D S-MSC MSC 1 MSB D DEM58 Quantity Quantity 17. A corrective subsidy to producers would lead to an efficient level of output in Market A. 18. A corrective subsidy to producers would lead to an efficient level of output in Market B. 19. A corrective tax on producers would lead to an efficient level of output in Market C. 20. A corrective tax on producers would lead to an efficient level of output in Market D.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

17. As MSC>supply, so producers need to increase supply to meet the socially optimal level. A corrective subsidy to producer would increase supply, leads to efficient level of output in market A. The given statement is TRUE.

18. As MSB>demand, consumers need to increase their demand which will possible after getting subsidy. A corrective subsidy to consumers leads to efficient level of output in market B. The given statement is FALSE.

19. As MSB<Demand, a corrective tax on consumers leads to efficient level of output in market C. After tax on consumers demand will decrease. The given statement is FALSE.

20. As MSC< supply, a corrective tax on producer help to decrease supply, that leads to efficient level of output in market D. The given statement is TRUE.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)