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If external economies of scale determine the location of tradable industries? Please explain.
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- "Since the occurrence of COVID-19 health crisis in Gaza in early 2020, severalexternalities existed during the partial, and complete economic lockdown."Answer the following questions:a. Define externalities.Is there a 'zero-externality' solution when it comes to poor air quality from pig farming, being the most threatening externality?Why do largest firms, who are also some of the largest polluters, have the resources to invest in more ‘eco’ technologies but often choose not to in favour of maintaining/increasing profit margins
- Goods that are inherently non-excludable and unrivalled are referred to as .Explain why a firm is not able to deal with an externalityConsider a two sector economy consisting of education and industry, with input-output matrix Suppose that the production from education is fixed at 1000 units. What range of production from industry is possible to meet realistic (≥ 0) external demands?
- Which is the correct answer? To be a Pareto-efficient, a competitive market in long-run equilibrium needs: a. Marginal external costs are = 0 b. Marginal private costs are above marginal social costs. c. Marginal private costs are below marginal social costs.Describe externalities as a source of market failure with the aid of a clearly labeled diagram.Suppose the demand for an industrial product is given by P equals 300 minus 2 Q , and the supply is given by P equals Q . Suppose that the pollution due to the production of this good imposes a per unit cost of c equals 3 on society. What type of externality is this, and what curve represents this externality being accounted for (social cost or social demand curve)? A. This is a positive production externality. The social supply curve would be P equals 3 plus Q. B. This is a negative consumption externality. The social demand curve would be P equals 97 minus Q. C. This is a negative production externality. The social supply curve would be P equals 3 plus Q. D. This is a positive consumption externality. The social demand curve would be P equals 103 minus Q.
- Example of internal integration and then an example of external integration.Which of the following prevents private market negotiations from adequately addressing an externality? a. Unclear property rights b. Perfect competition c. Allocative efficiency d. Low or zero transaction costs e. Perfectly symmetric information.The following question refers to the diagram below, which illustrates the market for a good whose production results in a negative externality. If there is no regulation in place to correct the externality, which area represents MARKET surplus? That is, at the market equilibrium, what area is consumer surplus, plus producer surplus, not considering damage to the environment? Select an answer and submit. a) a. b) a – d. c) a + b. d) a + b + e.