If you could draw the graph online insted of paper, I would highly appreciate it, since I have had a hard time trying to understand previous answers when the graphs are done by hand as sometimes they are unclear. And if possible, could you clearly separate the answer for each subpart of this question? I will give positive feedback on your answer! Thank you :) One approach to the problem of pollution control in a market economy is to sell pollution credits, whichare also known as externality rights. The local pollution-control agency has determined that 200 tons ofpollutants may be released without harm to the biological ecosystem into the local lake every year. Thecity has made 200 pollution credits available every year, where each credit owner is allowed to release 1ton of pollutants into the lake annually.3.(a) Draw a correctly labeled graph illustrating the effect of unregulated pollution in the market for paperand identify the following.a. Marginal private cost.b. Marginal external cost.(b) Draw a correctly labeled graph for the pollution credits and use your graph to explain how thepollution credits can address the pollution problem in your city.(c) Evaluate the effectiveness of pollution credits as a means to control pollution. Specifically, considerthe following.a.Costs to consumers, producers, and the general public.b. Benefits to consumers, producers, and the general public.

Pollution is a negative externality that imposes external costs on third parties who are not…

Answered: 3. One approach to the problem of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If you could draw the graph online insted of paper, I would highly appreciate it, since I have had a hard time trying to understand previous answers when the graphs are done by hand as sometimes they are unclear. And if possible, could you clearly separate the answer for each subpart of this question?

I will give positive feedback on your answer! Thank you :)

One approach to the problem of pollution control in a market economy is to sell pollution credits, which
are also known as externality rights. The local pollution-control agency has determined that 200 tons of
pollutants may be released without harm to the biological ecosystem into the local lake every year. The
city has made 200 pollution credits available every year, where each credit owner is allowed to release 1
ton of pollutants into the lake annually.
3.
(a) Draw a correctly labeled graph illustrating the effect of unregulated pollution in the market for paper
and identify the following.
a. Marginal private cost.
b. Marginal external cost.
(b) Draw a correctly labeled graph for the pollution credits and use your graph to explain how the
pollution credits can address the pollution problem in your city.
(c) Evaluate the effectiveness of pollution credits as a means to control pollution. Specifically, consider
the following.
a.
Costs to consumers, producers, and the general public.
b. Benefits to consumers, producers, and the general public.

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