EconReturn to ActivityScoreMentorMega Beans MarketBooming BerriesBooming BerriesMaterialsMark, if the external marginal cost fromBooming Berries is $20 per thousandpounds, what is the socially efficientprice per pound?130Booming Berrles120Clare110100$70908070Mark60That is correct!504030Econ20Mentor10Mark, if the external marginal cost fromBooming Berries is $20 per thousandpounds, what is the socially efficientquantity (in thousands)?102030405060708090100110120Quantity (in thousands)ClareEnter a response then click Submit below(in thousands)SubmitMacBook AirF12FI1F9F10F8F7F6888F4F5F3F2escF1*&24%8@#7342TEQtabPrice (per pound)

To answer this question, we will use the following diagram.

Answered: Econ Return to Activity Score Mentor…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 7SQ

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Similar questions

Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
What is a pollution charge and what incentive does it provide for a firm to take external costs into account?
Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost?
A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?
Identify the following situations as an example of a negative or a positive externality: You are a birder (bird watcher), and your neighbor has put up several birdhouses in the yard as well as planting trees and flowers that attract birds. Your neighbor paints his house a hideous color. Investments in private education raise your countrys standard of living. Trash dumped upstream flows downstream right past your home. Your roommate is a smoker, but you are a nonsmoker.
Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel efficient cars are the same as the marginal social benefits. Discuss one wags.r that the government cans ï¬‚y to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is flying to affect production through costs, net benefits.
Is zero pollution an optimal goal? Way or why not?
As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?
What is a marketable permit and what incentive does it provide for a firm to account for external costs?
Is zero pollution possible under a marketable permits system? Why or why not?
Do market demand curves reflect positive externalities? Why or why not?

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