Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply

question 125

Essay

Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. In order to reach the social optimum, should fire extinguishers be taxed or subsidized? What is the appropriate amount of the tax or subsidy on each fire extinguisher?

---

Definitions:

High Performance

Exceptionally strong output or results from a person, group, system, or organization, often exceeding the standard expectations.

Leadership Principles

Fundamental guidelines that inform and shape the actions and behaviors of leaders in various contexts.

Rewarding Performance

Practices and policies designed to recognize and reward employees based on their job performance, aimed at motivating and retaining talent.

Effective Discipline

The implementation of strategies and measures to correct behavior and ensure rules and standards are maintained in an organization or individual practice.