How do social values explain market failure

Subject: Customer Relationship Management

Paper Model: APA

Paper Type: Assignment

Total Words: 1478

Document Outline

How do social values explain market failure as a conflict between private and public goods? How do the concepts of exclusion and rivalry explain the conflict

Economic considerations permit some level of pollution: Explain in terms of marginal social benefits and marginal social costs. How is the optimal level of pollution incorporated into the graph of demand and supply for the product


Document Preview

How do social values explain market failure as a conflict between private and public goods? How do the concepts of exclusion and rivalry explain the conflict?

A public good is the good that is both in the non-rivalries’ and non-excludable. No one can restrict and stop the use of the public gods. The public goods are for the benefits of the community as the whole. In addition, these are not for the purpose of the earning or the gains or making the profit with sale of products and services. These are the fundamental rights of a person. Moreover, the consumption of these goods cannot reduce the amount for other consumer. In addition, the private goods are that is the possession of a single person. The social norms are not the personal property of a person. On the other hand, rivalry may exist in the private goods. However, the rivalry does not exist in public goods. On the other hand, when economist discusses the public goods this does not mean that these are general goods that may share the common characteristics. Public goods are naturally available or some services are provided by the government like ambulance etc.

Q2. Economic considerations permit some level of pollution: Explain in terms of marginal social benefits and marginal social costs. How is the optimal level of pollution incorporated into the graph of demand and supply for the product?

The production process causes some of the pollution the society. This is air, water, noise and land pollution due to different types of the gases and the waste from the factories and plants. This causes to reduce the reliability of the resources and make them not usable or unfit for the human. The production of the goods are necessary therefore, economics allow some pollution. On the other hand, the concept of the zero pollution is not possible. The marginal social benefits are that the optimal level of pollution is the maxim amount that can pollute. However, the social corporate responsibility of the business is to maintain a sustainable environment. Therefore, the make sure that marginal costs do not exceed the social marginal benefits. In addition, social optimal level of pollution occurs when the marginal cost of pollution becomes equally to the marginal benefit of the last unit of pollution. That is the point at which the marginal utility of the society is maximized. The ongoing process will make benefit in negative. All externalities of pollution are accounted for level of pollution.

Q3. Use a simple numerical to explain how comparative advantage can lead to gains from trade. Change the number to prove that absolute advantage does not lead to gains from specialization and exchange.

The individual or state that has the smaller opportunity cost of manufacturing a good is to have comparative advantage. The comparative advantage determines about the specialization of country in producing goods.

Click the button above to view the complete essay, speech, term paper, or research paper

Tags


Related Uploads

pages
.
4 pages
.
5 pages
pages
pages
3 pages
.
.
pages
.
.
2 pages
.
7 pages
.
.
pages
.
.
pages
.
.
5 pages
.

Question Answer

Subject: Business-to-Business Marketing

Model: APA

Type: Assignment

Words: 1151

.
2 pages
.
pages
.
.
3 pages
.

Fiduciary duties in bankruptcy

Subject: Consumer Behavior

Model: APA

Type: Assignment

Words: 556

.
2 pages
.
.
7 pages
.

Future of Social Media

Subject: Consumer Behavior

Model: APA

Type: Assignment

Words: 1551

.
7 pages
.

Understanding American culture

Subject: Consumer Behavior

Model: APA

Type: Report

Words: 2025

.
3 pages
.

Topic 2 Individuality

Subject: Consumer Behavior

Model: APA

Type: Assignment

Words: 544

.
20 pages
.
.

Recent Documents