This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the consumption of a good involves a positive externality, what can be done to encourage ... (Read 64 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 29, 2018
If the consumption of a good involves a positive externality, what can be done to encourage consumers to consume more of the good?
 
  What will be an ideal response?

Question 2

Refer to the scenario above. Which of the following statements will hold true if the starting bid is 300?
 
  A) Everyone except Bob will take part in the auction.
  B) Everyone will take part in the auction.
  C) Only Bob will take part in the auction.
  D) Everyone except Joe will take part in the auction.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 29, 2018
Answer to Question 1

If the consumption of a good involves a positive externality, the marginal social benefit derived from the good exceeds the marginal private benefit. However, the consumers of the good do not take this additional benefit into consideration and continue consuming only as long as the marginal private benefit from consumption exceeds the marginal private cost. In this case, if the consumption of the good is subsidized, the marginal private benefit from consumption will increase, causing consumers to consume more.

Answer to Question 2

A


Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Positive regulation of the lac operon by the catabolite activator protein (CAP) Positive regulation of the lac operon by the catabolite activator protein (CAP)
Good computer skills are now required to be a successful member of an office staff. Good computer skills are now required to be a successful member of an office staff.
Diet Soda's Consumption's Association with Increased (not Decreased) Prevalence of ... Diet Soda's Consumption's Association with Increased (not Decreased) Prevalence of ...
Asomatognosia typically involves damage to the right parietal lobe. Asomatognosia typically involves damage to the right parietal lobe.
Good body mechanics for sitting on chair while performing massage. A. Sit with back and head in ... Good body mechanics for sitting on chair while performing massage. A. Sit with back and head in ...
Positive and Negative Reinforcement Positive and Negative Reinforcement
Video: Blood Pressure Measurement

For a complete list of videos, visit our video library