Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 16SQ
To determine
The impact of freely allowing the firms to pollute the environment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
a. Draw a graph showing the market for ride-hailing services in midtown Manhattan before the congestion fee was imposed. Indicate the efficient equilibrium quantity and the market equilibrium quantity
K What are the obstacles to achieving an efficient allocation of resources in the market economy? The obstacles to achieving an efficient allocation of resources in the market economy include OA. taxes and subsidies, externalities, monopoly, and public goods B. rising wage rates, technological advances, falling oil prices, and changes in preferences C. rising wage rates, externalities, technological advances, and common resources D. taxes and subsidies, falling oil prices, monopoly, and changes in preferences
Note:-
Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.
Answer completely and accurate answer.
Rest assured, you will receive an upvote if the answer is accurate.
In macroeconomics
1. List and explain the three ways in which there can be market failure.
2. Define externality and distinguish between positive and negative externality and their impact on production, using examples where possible.
3. How can a government correct for positive and negative externalities ?
Give real life examples
Chapter 4 Solutions
Micro Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
Knowledge Booster
Similar questions
- Person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good b yields 2 units whereas each hour devoted to good A produces 4 units. (a) State whether 9 units of good B and 12 units of good A are attainable, unattainable, efficient or inefficient (b) Person 2 can produce 3 units of good B and 4 units of good A per hour. (I) who has absolute advantage oil production of good B?(ii) who has absolute advantage in the production of good A?(iii)calculate the opportunity cost for good B for person 2 (iv) calculate the opportunity cost for good A for person 1 (v) who has the comparative advantage in the production of good B?(vi) who has the comparative advantage in the production of good A ?arrow_forwardWhat are some markets (goods or services) where an equilibrium might not be the most desirable point? Meaning, if left alone, the market produces too much or too little compared to societal needs. Example: In a purely free market, we might get a housing equilibrium where many people are still without housing, meaning we have homeless people in the streets.arrow_forwardName a type of market failure and explain why this market failure results in economic inefficiencies.arrow_forward
- Let the supply and demand for widgets be given by the following schedule. Price: 3, 4, 5, 6, 7, 8, 9, 10, 11 Quantity Supplied: 100, 200, 300, 400, 500, 600, 700, 800, 900 Quantity Demanded: 900, 800, 700, 600, 500, 400, 300, 200, 100 a. What quantity will be produced here? b. What quantity is efficient if there are no external costs or benefits? c. What quantity is efficient if there is an external cost of $6 per unit from pollution caused by the widget factories?arrow_forwardExplain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality of Production or (B) Negative Externality of Consumption or (C) Positive Externality of Production or (D) Positive Externality of Consumption: Almawassi village does not have a public fire department, some homeowners purchased private fire protection services to provide a positive externality to neighboring properties, which are less at risk of the protected neighbor's fire spreading to their (unprotected) house. Wakefulness due to a neighbor listening to loud music late at night. a person smoked heavily in a public place. A farmer who uses pesticides to produce vegetables A person planted ornamental trees along Salahiddeen street Creative laboratories which try to find vaccine for COVID 19 The corporate development of some free software to benefit students A software company that creates social media programs No. 2 3 4 5 6 7 8 Answerarrow_forward(a) What is market failure? discuss two causes of market failure. describe briefly how a government could address these market failures. (b) Discuss this normative statement: “Governments should use targeted industry policy to assist specific firms, and industries achieve sustainable competitive advantage”.arrow_forward
- (a) What is market failure? List and discuss two causes of market failure. describe briefly how a government could address these market failures. (b) Discuss this normative statement: “Governments should use targeted industry policy to assist specific firms, and industries achieve sustainable competitive advantage”.arrow_forwardConsider a common resource good like a free camping ground next to a lake. a. What is the inefficient outcome generated in this example if the quantity of people using the camping ground was determined by a free market relative to the social optimum? What causes this inefficient outcome? b. Propose one way in which to solve the inefficient outcome described above.arrow_forwardFor each of the goods, identify the characteristics that describe each good. Note that each good will be described with two characteristics. Rivalrous is also referred to as rival in consumption. Consider only the immediate benefits and costs, not any externalities. National Defense Pay- Per- View Cable Television A Hot Pocket Sandwich Private Classroom Education Pajamas A unicycle Excludable Nonrivalrous Nonexcludable Rivalrousarrow_forward
- 1. Public goods have all of the following characteristics EXCEPT: a.one person's consumption does not affect another person's consumption. b.tax dollars are used for the provision of public goods. c.firms find public goods profitable to produce because people value them. d.a free-rider problem develops with public goods. e.those who do not pay cannot be excluded from consuming the good.arrow_forwardIn the funky town of Chocoville, there's a firm called "Messy Chocolate Inc" that produces chocolate. Messy Chocolate Inc is located on a river that passes through the town, and this river is the only source of drinking water for the people of Chocoville. Due its messy production processes of chocolate, Messy Chocolate Inc pollutes the river: The company accidentally turns the beautiful river into a giant chocolate milkshake. The more chocolate the company produces, the more giant chocolate milkshake pollution it causes. Three groups of citizens in the town are directly affected by this pollution: (1) The children (who love milkshake) (2) the middle-aged (who would like to have access to clean water rather than milkshake) (3) the elderly (who face diabetes risks) Write down whether the chocolate production process of Messy Chocolate Inc generates positive or negative externalities for each group. Groups Externality is positive or negative? (In each box below, simply write…arrow_forwardExplain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality of Production or (B) Negative Externality of Consumption or (C) Positive Externality of Production or (D) Positive Externality of Consumption: The corporate development of some free software to benefit students A software company that creates social media programsarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning