Question : 11) When a farmer in Manitoba produces fertilizer run-off that : 1384318

 

 

11) When a farmer in Manitoba produces fertilizer run-off that pollutes the local water system,

A) the amount of farm output will not be profitable.

B) the amount of farm output produced will not be cost-effective.

C) the amount of farm output produced will be less than the efficient level.

D) the farm should stop producing agricultural products altogether.

E) the amount of farm output produced will exceed the efficient level.

12) A paper mill discharges chemicals into a river which washes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: = 5 + Q, = 10 + 2Q, and MB = 35 – 0.5Q. A competitive free market will produce output of ________ units, and this amount is ________ than the allocatively efficient level of output.

A) 5; less

B) 10; less

C) 15; more

D) 20; more

E) 25; more

13) A paper mill discharges chemicals into a river which washes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: = 5 + Q, = 10 + 2Q, and MB = 35 – 0.5Q. The marginal external cost at the competitive free-market equilibrium is

A) 5.

B) 10.

C) 15.

D) 20

E) 25.

14) A paper mill discharges chemicals into a river which washes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: = 5 + Q, = 10 + 2Q, and MB = 35 – 0.5Q. The allocatively efficient level of output is ________ units.

A) 0

B) 10

C) 15

D) 25

E) 30

15) A paper mill discharges chemicals into a river which washes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: = 5 + Q, = 10 + 2Q, and MB = 35 – 0.5Q. The marginal external cost at the allocatively efficient level of output is

A) 0.

B) 5.

C) 10.

D) 15.

E) 20.

16) A paper mill discharges chemicals into a river which washes the shores of a downstream resort area. The private marginal cost, social marginal cost, and marginal benefit associated with the production of paper are given by the following equations: = 5 + Q, = 10 + 2Q, and MB = 35 – 0.5Q. The marginal external cost is ________ throughout the output range.

A) zero

B) constant

C) increasing

D) decreasing

E) negative

17) Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant. The private marginal cost, social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations:

A) 20; $25

B) 20; $40

C) 15; $40

D) 15; $35

E) 10; $35

18) Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant. The private marginal cost, social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations:

A) $5

B) $10

C) $15

D) $20

E) $25

19) Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant. The private marginal cost, social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations:

A) 0

B) 5

C) 10

D) 15

E) 20

20) When the marginal costs of pollution abatement equal the marginal benefits of pollution abatement,

A) any further reductions in pollution will lower net social benefits.

B) pollution has been entirely eliminated.

C) any further reductions in pollution will continue to increase net social benefits.

D) then firms are likely to increase output.

E) then firms are likely to decrease output.

 

 

 

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