Topic 3 DQ 1

Figure 5-4Suppose there are several paper mills producing paper for a market. These mills, located upstream from a fishing village, discharge a large amount of wastewater into the river. The waste material affects the number of fish in the river and the use of the river for recreation and as a public water supply source. Figure 5-4 shows the paper market. Use this Figure to answer the following question(s).Refer to Figure 5-4. What does S1 represent?   Question 4 options:   A)  the market supply curve that reflects social cost   B)  the market supply curve that reflects only external cost   C)  the market supply curve that reflects only private benefit   D)  the market supply curve that reflects private cost

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5) Suppose that an international agreement requires exporters to reduce their carbon emissions. In this context, government subsidies are provided to R&Ds that will enable green-friendly production in exporting industries that produce high-tech.a) Explain what might be the reasons for the implementation of such an activist policy.(Answer this question with the arguments of your main course book, (Krugman; Obstfeld; Melitz; 2015))b) Describe how the Environmental Kuznet curve works. Let's assume that there is a green-friendly technology transfer from developed countries to less developed countries in order to achieve the goal of a decrease in emission, then what will happen to the curve?

There is increasing scientific evidence that climate change caused by human actions has substantially impacted surface temperatures on Earth. However, what is unclear is the tools available to managers and policymakers to reduce carbon emissions. Greenhouse gas emissions come from a large number of sources such as power plants, and factories to automobiles all around the world. Therefore, the number of pollution sources that need to be controlled is enormous. Additionally, countries often balk at the enormous price of curtailing their emissions. To address some of these challenges, the European Union adopted a cap-and-trade system to reduce their emissions. As an economic advisor and consultant to the European Union, your opinion has been sought on the cap-and-trade system and whether it is beneficial in reducing carbon emissions. Using the tools of managerial economics, analyse the cap-and trade system and comment on the ability of this policy to reduce carbon emissions. Does a…

Lecture: Externality - Pigou8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost functionis C(QA) = 125 + 8QA + 5QA2, where QA is leather production per week in thousands of pounds.a) If leather sells for $408 per thousand pounds, how much leather will All-Leather produce?How much profit does All-leather earn?Enjoy is a beverage company located on Lake Michigan near All-Leather in Chicago. Enjoy’sproduction of beverages is negatively affected by water pollution from All-Leather’s productionof leather. Enjoy’s total cost function to produce beverages isC(QE) = 10QE +3QE2 + 3QA2where QE is Enjoy’s weekly production of beverages, in thousandsof gallons and, as above, QA is All-Leather’s weekly production of leather.b) Is this an example of a pecuniary externality or a real externality? Explain.c) What is the extra cost to Enjoy from an additional thousand tons of leather production by AllLeather (i.e., the external marginal cost of an extra unit of QA…

Problem 4: please use the following to complete the graph

Problem 4: use the graph for the following directions

[Topic : Market allocation and welfare; lecture: externality  need part d and e

Examples of information as facts include (select all that apply):  TV program listings  Stock prices Pizza recipe Protein folding instructions Map directions Examples of information as instructions include (select all that apply):  TV program listings Stock prices Pizza recipe Protein folding instructions Map directions Which one of the following statements is correct?  Most information goods are physically excludable.  Digital rights management is one way to deal with the problem of excludability.  Experience goods are best sold to those who have not experienced them yet.  Most information goods are not experience goods.  The value of information is defined as: Value(best decision | informed) – Value(best decision | uninformed)  Value(best decision | uninformed) – Value(best decision | informed)  Value(best decision | informed) – Value(worst decision | informed)  Value(worst decision | uninformed) – Value(worst decision | informed)  Value(best decision) - Value(worst…

Environmental Crime and Punishment Economists tend to view the decision by an individual to comply with an environmental law in terms of economic motivations. While good citizenship—obeying the law simply because it is the law—certainly plays a role in affecting behavior, it is also useful to analyze compliance decisions in terms of benefits and costs. Figure 14.3 illustrates a hypothetical marginal cost–marginal benefit analysis for a manager in a coal-fired power plant who has to decide what percentage of the time he or she plans to be in compliance with the sulfur dioxide emission standards on his or her state permit. The benefits that come from complying with environmental laws are essentially the avoided costs of punishment: monetary costs (fines and penalties), a damaged reputation (both for corporations and individuals), and the fear of jail terms. The expected benefits depend on two factors: the magnitude of the punishment if imposed and the likelihood of…

4c i) Discuss the limitations of the Coasian approach to externalities 4cii) Discuss the strengths of the Coasian approach to externalities

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Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Permit System Public Policy The government limits total carbon-dioxide emissions by all factories to 240,000 tons per ten years. Each individual factory is given the right to emit 220 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $270 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. The government charges factories $270 for every ton of carbon dioxide they emit. Command-and- Control Policy…

d/qui//attempt.php?attempt%3D19719928&lcmid%3D1786124 Clackamas Students Faculty English (United States) (en_us) Oh. There are positive externalities associated with smoking. 10 long-run. Smoking will decrease more in the short-run than in the O j. Smoking will decrease only slightly in the short-run. The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is $1300 per month, and the government proposes a rent ceiling of $1000 per month. of Which of the following statements are false? (Select all that apply.) estion There will be a shortage of housing. Ob. The rent-control law will have no effect on the market. The law would make rental units more expensive. d. There will be an excess supply of housing. The law may result in an increase in the cost of non-rental housing. We would except to see an increase in the supply of non- rental housing units. g. The government…

Back to Assignment Attempts Keep the Highest / 3 7. Correcting for negative externalities - Taxes versus tradable permits Paper factories emit chemicals as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a negative externality of paper production. Suppose the U.S. government wants to correct this market failure by getting firms to internalize the cost of pollution. To do this, the government can charge firms for pollution rights (the right to emit a given quantity of chemicals). The following graph shows the daily demand for pollution rights. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool (? Daily Demand for Pollution Rights 90 81 I Price (Dollars per ton) 72 Quantity Demanded (Millions of tons) 450…

Q8. A trade off exists between a clean environment and a higher level of income in that a) studies show that individuals with higher levels of income pollute less than low-income individuals. b) efforts to reduce pollution typically are not completely successful. c) laws that reduce pollution raise costs of production and reduce incomes. d) employing individuals to clean up pollution causes increases in employment and income. Answer ____ Explain your answer:

Over the last 10 years the federal government has dramatically increased the number of regulations pertaining to transportation security and the effects of transportation on the environment. After the terrorist attack on the United States on September 11, 2001, the Department of Homeland Security (DHS) was established. Within the DHS is the Trans- portation Security Administration, which is responsible for implementing regulations to protect the safety of passengers using the U.S. airline industry. These regulations require passengers to be screened for illegal items before they enplane, limit the size and nature of items in carry-on luggage, and provide guidelines for more intense scrutiny of ran- domly selected passengers. Critics of these policies complain that these policies delay passengers, increase time through airports, cause delays, and increase costs for the air- lines. Proponents of these policies argue that the safety of air passengers is more impor- tant that these delays…

What externality is carbon pricing trying to address? Explain why this is an externality. What roll does government have in addressing externalities

Exercise 1.23: Challenging Question. The Mondevil Corporation operates a chemical plant, which is located on the banks of the Sacramento river. Downstream from the chemical plant is a group of fisheries. The Mondevil plant emits by- products that pollute the river, causing harm to the fisheries. The profit Mondevil obtains from operating the chemical plant is $II > 0. The harm inflicted on the fisheries due to water pollution is equal to $L > 0 of lost profit [without pollution the fisheries' profit is $A, while with pollution it is $(A - L)]. Suppose that the fisheries collectively sue the Mondevil Corporation. It is easily verified in court that Mondevil's plant pollutes the river. However, the values of II and L cannot be verified by the court, although they are commonly known to the litigants. Suppose that the court requires the Mondevil attorney (player 1) and the fisheries' attorney (player 2) to play the following litigation game. Player 1 is asked to announce a number x≥0,…

A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. The table below shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Emissions Total Cost Marginal Cost Total Benefit Marginal Benefit 16 MG Current N/A Current N/A 12 MG 50   800   8 MG 150   1300   4 MG 500   1650   0 MG 1200   1950   Complete the table. What is the optimal level of sewage for this city? How can you tell?

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It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. In the situation described above, we would expect an   Question 28 options:   A)  external cost resulting from the production of hydroelectric power.   B)  attainment of allocative efficiency in the market.   C)  underproduction of paper in the mills.   D)  overproduction of paper in the mills.

A light house that warns ships about nearby rocks is provide in consumption and. . As a result, the private market will likely lighthouses. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. nonrival; nonexcludable; too few a b nonrival; nonexcludable; too many rival; excludable; the optimal amount of nonrival; excludable; too few

Common resources are goods that are and Select the correct answer below: non-excludable; rivalrous O excludable; non-rivalrous excludable; rivalrous O non-excludable; non-rivalrous