Identify the total private surplus-external bene?ts

Reference no: EM133440633

Assignment:

1. Consider the market for a good that has a positive externality and that is produced by a monopolist. How does the amount produced in the absence of any government policy compare with the amount that would maximize the total social surplus? Identify the total private surplus, external bene?ts, and total social surplus both at the level of production that occurs Without government intervention and at the level of production that maximizes the total social surplus. What is the deadweight loss in the absence of government intervention?

2. How would you expect the following changes to affect the prevailing wage and employment of workers in fast food restaurants? (Note: Except in part (d), you should assume that the wage and employment are determined by the intersection of the labor supply and demand curves.)

a. Increasing public awareness of nutrition reduces the demand for fast food at a given price.

b. The growth of the gig economy makes it much easier to obtain work outside the fast food industry.

c. The introduction of new fryers increases the productivity of fast food workers.

d. Fast food workers unionize and are able to negotiate a wage that is above the previously prevailing wage.

Reference no: EM133440633

Questions Cloud

What is the profit of private seller in ideal position : What is the profit of the private seller in the ideal position (which can be the biggest profit)?

Discuss how the ncvs and the british crime survey : Discuss how the NCVS and the British Crime Survey use different strategies for sampling to produce sufficient numbers of respondents.

Describe how bundled payments work : Describe how bundled payments work, using the example of lower extremity joint replacement (LEJR). What is the intent of using the bundled payment model?

How does health insurance affect economic conditions : Why is it important for health policymakers to be familiar with basic economic concepts? And how does health insurance affect economic conditions?

Identify the total private surplus-external bene?ts : Identify the total private surplus, external bene?ts, and total social surplus both at the level of production that occurs Without government intervention.

Compare the market success relative to its competitors : Compare the market success (or lack thereof) relative to its competitors. For example, Tesla, Lightyear, Sono Motors,Stellantis.

What is global supply chain : What is global supply chain? Why Boeing Inc. choose to let foreign producer manufacture more than 70% of the airplane parts?

Analyze the pros and cons of raising the minimum wage : Analyze the pros and cons of raising the minimum wage. What position do you support for our economy and explain your reasoning?

Implications of this volume to facility future income stream : Analyze costs and revenue of at least 3 specific departments. Then, evaluate implications of this volume to the facility's future income stream.

User Account

All Pages