Answer the following two questions please Question 2 0/1 point The existence of

Question

Answer the following two questions please

Question 2 0/1 point The existence of positive externalities 1) cause the production of products to exceed their socially optimal levels. 2) indicates that property rights have been appropriately determined 3) cause the production of products to be less than their socially optimal levels ·4) means that the marginal social costs curve is positioned lower and to the right of the marginal private costs curve. Question 4 0/1 point Anakin Skywalker is two years away from graduating from the Jedi Training Academy. One potential employer, Darth Sidious, offers Anakin one-year internship that would start after Anakin graduates in two years. The internship pays $10,000, delivered at the start of the internship. If the interest rate is 5 percent, what is the present value of Darth Sidious' internship offer? 1$10,000/(1.05)2 $9,070 2) $10,000 (1.05)2-$11,025 3) $10,000 4) $10,000/1.05 = $9,524

Explanation / Answer

1) The existence of positive externalities:

Solution: means that the marginal social cost curve is positioned lower and to the right of the marginal private costs curve

Explanation: If the marginal social cost curve is below the marginal private cost curve, then it will mean a positive externality

2) Solution: 10,000/(1.05)^2 = $9070

Working

P (1+0.05)^2 = 10,000

or P=9070

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