What are the external costs of heavy traffic?

Q: The city of Solarville, in which all cars are electrical ones and electricity is generated by solar…

A: Externalities : It can be of two types based on cost and benefits . First one is positive…

Q: Consider the graph below where there are two pollution-abatement technologies (Old and New)…

A: The total abatement cost refers to the cost of reducing environmental damages such as pollution. It…

Q: If a Pigouvian tax is used to reduce carbon emissions, it must be set to be equal to 1. the private…

A: A Pigouvian tax is a type of government tax on any market activity that creates negative…

Q: State whether the given statement is true or false. Give reason to support your answer.…

A: The given statement construction of dam can have negative impact on ecosystem is absolutely true.

Q: A Pulp and Paper mill in Port Alberni releases pollution into nearby wetlands, and the associated…

A: The private outcome is obtained when only the private costs and benefits are taken into account…

Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 8 - E. If…

A: Abatement costs are the price of removing undesired byproducts produced during production.…

Q: Which of the following indicate the marginal external cost and the socially optimal quantity? A…

A: The change in the cost to other individuals other than the producer or buyer of a particular good or…

Q: Explain the role of government in setting transport laws.

A: The government sector plays a major role in solving the issues of the economy. It is the government…

Q: Alcohol taxes that are used by government as an incentive for distillers and beer wholesalers to cut…

A: There is negative externality generated due to consumption of alcohol. Thus government imposes the…

Q: Because of the problem of second-hand smoke, if unregulated, the market for cigarettes would produce…

A: The cigarettes cause negative externality in the market. If there is negative externality exists in…

Q: To produce a unit of electricity, 0.21 units of electricty are required and 0.16 units of plastic…

A: Answer: The input-output matrix is given below: A=0.210.10.160.03 The final demand matrix is given…

Q: Should the Park Service be concerned about the economic impact of a reduceddemand for visits on…

A: Meaning of Economic Impact or Market Economy on Demand: It refers to the products that society…

Q: Marginal external cost

A: Marginal cost is the addition to the total cost which is incurred by producing an additional output…

Q: suppose that the xyx industry produces a product that result in negative external cost to society.…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: The demand for cigarettes is given by P​ = 450-0.2Q. Cigarettes are manufactured at a constant…

A: Competitive equilibrium is set where the P = MC. While the socially optimal level is achieved where…

Q: If the government overcorrected in a situation of external costs

A: An external cost is an economic term referring to the cost (negative) or benefit (positive) caused…

Q: The equation for the marginal cost of reductions is P=1+R*2 The equation for the marginal benefit of…

A: Marginal cost of reductions: PC =1+2R Marginal benefit of reductions: PB =33-2R where; R = Rate of…

Q: What is cost–benefit analysis of public goods?Why is it important? Why is it hard?

A: Public goods are the goods that are neither rival nor excludable. The cost benefit analysis compares…

Q: MAC = 94 - 0.04E %3D MD = 0.01E The government sets an emission standard at E = 2000. %3D The…

A: Marginal Damage (MD) is defined as the hard caused by the additional units of pollution emitted into…

Q: What is two external costs and two external benefits of the transportation.

A: A person, company, or group incurs an external expense as a consequence of an economic activity in…

Q: C

A:

Q: Give an exmple of External Rate of Return (ERR) with complete solution and diagram.

A: Internal Rate of Return The interest rate at which the present value of all of the project's…

Q: Is it true that some environmental analysts think that the latest war in Iraq was related in part to…

A: Iraq remains a destablishing influence to the flow of oil to the international markets from the…

Q: How is the “free-rider” problem so potentially vexing to the challenge of mitigatingclimate change?

A: Public goods are those goods which are non-rivalrous and non-excludable.

Q: what are some positive pecuniary externalities from trains?

A: An externality is an expense or advantage brought about by a maker that isn't monetarily caused or…

Q: The figure shows a national marketable permit system for carbon dioxide. If marginal abatement costs…

A: Permit Fees/Price implies the license, building review, designing, and arranging expenses paid via…

Q: Examine positive and negative externalities in an industrial sector

A: An externality is the benefit or cost borne by the third party as a result of a production or…

Q: Price and cost (dollars per pound) MSC 20 MC 10 MSB 250 400 Quantity (per boat) The figure shows the…

A: A deadweight loss is a cost to society due to market inefficiency as the economy is not having…

Q: How have subsidies contributed to non-sustainable forestry in US and Canada?

A: The subsidies contribute to non-sustainable forestry in the US and Canada due to the direct link of…

Q: What are some pros and cons of being an environmental economist?

A: pros:-  the advantage of being an environmental economist is that is a great profession and can do…

Q: There is often litter along highway but rarely in peoples yards. Provide an economic explanation for…

A: The externalities are the incidence of one party's actions affecting another uninvolved party.…

Q: Is capacity in a wireless network a real or pecuniary externality?

A: A pecuniary externality occurs when the actions of an economic agent affect the market prices. Real…

Q: Talk about Environmental scanning.

A: Environmental scanning is the process of continuously monitoring the organization and detecting the…

Q: n order to create more jobs in the region, the local government gave permission to a foreign…

A: Externality refers to the situation where economic activity by one person or a group affects the…

Q: The government auctions off 500 units of pollution rights. They sell for 50 dollars per unit,…

A: A corrective tax is a tax which is designed to induce the private decision makers to take the…

Q: Which of the following is an example of an activity that creates an external cost? i. a smoker…

A: Externality’ means the uncompensated impact of one person’s actions on well being of a bystander. If…

Q: Why are common property resources subject to market failures due to non excludability? Please…

A: The market failure occurs where the market forces do not deliver an efficient result.

Q: Market demand is MWTP= 60 - 2Q. Market supply is MC = 27 + Q. Each unit transacted results in a $Q…

A: A Pigouvian tax is a tax on any market activity that generates negative externalities.

Q: Discuss whether the involvement of private sector in the provision of transport investment will…

A: Transport infrastructure is necessary for the economic efficiency. Private investors can invest in…

Q: A polluter has abatement costs given by MAC = 405-0.15E, and the emissions cause damages given by MD…

A: The expense made when producing goods and services in an economy is known as the cost. It implies…

Q: Which mode of transport is currently experiencing a resurgence, and why?

A: When talking about transportation, there are different modes of transports used to move from one…

Q: Suppose that the xyz industry produces a product that result in negative external cost to society.…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Discuss factors affecting the effectiveness of the cost analysis of transport markets.

A: Transferring things from one site to another is never cheap; the heavier the load and the longer the…

Q: Identify an external benefit that could be generated by the presence of a shopping mall for local…

A: Positive Externalities: Positive externalities refer to the benefit enjoyed by the third person who…

Q: external forces that are driving changes in the global economy for transportation. b. A…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.