A and B are neighbours.A grows crop and B raises cows. if there is no intervention, the cows will eat some of A crops. the marginal benefits to B of holding the cows are given by MB=500-2Q where Q is the number of cows. The marginal private cost are constant at Ksh.100. The marginal damage to jane is Ksh. 50 How many cows will john hold if he maximizes his profit What would be the social optimal numbers of cows? What would be the optimal pigouvian tax rate. instead of producing such a tax, a fence would be build around johns land for KSh. X. eliminating externality. what is the maximum amount of money joe would be willing to pay for such a fence?
A and B are neighbours.A grows crop and B raises cows. if there is no intervention, the cows will eat some of A crops. the marginal benefits to B of holding the cows are given by MB=500-2Q where Q is the number of cows. The marginal private cost are constant at Ksh.100. The marginal damage to jane is Ksh. 50 How many cows will john hold if he maximizes his profit What would be the social optimal numbers of cows? What would be the optimal pigouvian tax rate. instead of producing such a tax, a fence would be build around johns land for KSh. X. eliminating externality. what is the maximum amount of money joe would be willing to pay for such a fence?
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 3SQ: From an economic viewpoint, the optimal amount of pollution a. is zero because all pollution imposes...
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A and B are neighbours.A grows crop and B raises cows. if there is no intervention, the cows will eat some of A crops.
the marginal benefits to B of holding the cows are given by MB=500-2Q where Q is the number of cows.
The marginal private cost are constant at Ksh.100.
The marginal damage to jane is Ksh. 50
- How many cows will john hold if he maximizes his profit
- What would be the social optimal numbers of cows?
- What would be the optimal pigouvian tax rate.
- instead of producing such a tax, a fence would be build around johns land for KSh. X. eliminating externality. what is the maximum amount of money joe would be willing to pay for such a fence?
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