1. In Figure 1 below, MDu denotes the marginal damage of ambient PM2.5 in urban areas, MDr is the marginal damage of ambient PM25 in rural areas, and MAC are marginal abatement costs, which we assume to be identical across both rural and urban areas. Please show the social cost of setting a uniform national standard for ambient PM2.5 levels applicable to both rural and urban areas (compared to setting differentiated standards for each). a) Assume that the national standard is set at eu. b) Assume that the national standard is set at e.

1. In Figure 1 below, MDu denotes the marginal damage of ambient PM2.5 in urban areas, MDr is the marginal damage of ambient PM25 in rural areas, and MAC are marginal abatement costs, which we assume to be identical across both rural and urban areas. Please show the social cost of setting a uniform national standard for ambient PM2.5 levels applicable to both rural and urban areas (compared to setting differentiated standards for each). a) Assume that the national standard is set at eu. b) Assume that the national standard is set at e.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a good is excludable and has a near-zero marginal cost, it is probably a club good. Question 26Select one: True False Question 27 Not yet answered Marked out of 1.00 Flag question Question text Given that there is a limited quantity of pollution we can add to the Earth's atmosphere before it becomes degraded, we can regard the air as a common-pool resource. Question 27Select one: True False Question 28 Not yet answered Marked out of 1.00 Flag question Question text Positive externalities can cause Pareto-inefficiency. Question 28Select one: True False
this is question one for reference
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Suppose that engineers have discovered a new production process for this product which results in a significant positive externality. As a result of the positive externality, for every given output level Marginal Social Value (MSV1) is now higher than consumer’s marginal willingness to pay (also known as the Demand Curve shown as D0 below). Keep in mind that the setting is still that of a monopoly. 1) Please indicate on the graph above, assuming an absence of any government intervention to correct the positive externality and adding any necessary curve(s): The monopoly price P1 and the monopoly quantity Q1 under the condition of the (uncorrected) positive externality. (Also indicate, for comparison purposes, the original monopoly price P0 and monopoly quantity Q0.) The Socially Optimal output, QSO1. The resulting Consumer Surplus CS1, the resulting Producer Surplus PS1, and the size of Dead-Weight Loss DWL1 if there is such a loss. (No need to show the economic profits earned by the…
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
#2. You have two periods. I've given you an externality with MEC=0.05q1. So, MB1=8-0.4q1 MB2=8-0.4q2. So, the externality is a cost realized in period 2 but caused by period 1's production choice. Q1 belongs to the first period, and Q2 is the second.
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