• A beekeeper lives adjacent to an apple orchard. • The orchard owner benefits from the bees because each hive pollinates about one acre of apple trees. • The orchard owner pays nothing for this service, however, because the bees come to the orchard without his having to do anything. • Because there are not enough bees to pollinate the entire orchard, the orchard owner must complete the pollination by artificial means:
Q: Suppose that there are only two polluters in a society. If left uncontrolled, polluter 1 emits 85…
A: Given,
Q: PRICE OF WILDFLOWERS 9. Efficiency in the presence of externalities Wildflowers grant many external…
A: Externalities refer to the costs or benefits of an economic transaction incurred on a third party…
Q: There are three industrial firms in Happy Valley. Firm Initial Pollution Level Cost of Reducing…
A: Tradable pollution permits or cap and trade is the situation where the government decided to reduce…
Q: B A Marginal Benefits to Factory A+B+C A+B E A B C Marginal Costs to Community F D E The graph above…
A: The above chart illustrates the incremental advantages a factory gains from pollution and the…
Q: Submit AL Which statement is TRUE with regards to the use of tradable permits for controlling carbon…
A: In economics, tradable permits are the government provided rights to a firm to generate a specfiic…
Q: . Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states…
A: If Wisconsin spends 1,200 to clean the lake, then the Wisconsin receives benefit of 1,100 and…
Q: 8. Assume there are two firms in an industry that generate a nasty pollutant. The government wants…
A: A negative externality occurs when the actions of a producer or consumer impose costs on third…
Q: 20.21.23. Please answer by a.b.c.d as I didnt put them thank you. The Tragedy of Municipalities…
A: An externality is a cost or benefit that arises from an economic activity but is not reflected in…
Q: Questions 1-4 The Alpha, Beta, and Gamma residents of a village are install street lights along the…
A: Note: Since the question contains more than three subparts due to Bartlrby policy we are allowed to…
Q: 1. Marginal Abatement Cost Curves There are two coal plants that generate electricity, firm 1 and…
A: Abatement cost:When any firm or industry emits pollution then they pay the cost for the loss they…
Q: The public smoking of cigarettes generates costs to society from second-hand smoke, therefore,…
A: The objective of the question is to identify the socially optimal equilibrium in the context of…
Q: marginal benefits
A: Marginal benefits check with the additional or incremental advantages or pride won from ingesting…
Q: The government has recently introduced a marketable permit program for major polluters where one…
A: A negative externality in economics is a cost that is imposed on a third party as a result of an…
Q: Number in herd Annual crop loss Crop loss per additional steer (Steers) (Tons) (Tons) 1 2 2 3 4 10 4…
A: Given information Price of selling output=$3.5 per steer Cost of crop damage is $1 ton Number of…
Q: 10. Likewise, in the case of positive externalities there is no incentive for the private consumer…
A: This is a fill up question talking about positive externality and public goods. A positive…
Q: The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate…
A: Marginal cost of Eliminate also known as the marginal abatement cost is the additional cost incurred…
Q: Suppose the government has determined that the socially optimal quantity of chemical pollution is…
A:
Q: A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city.…
A: MC(marginal cost) and MB(marginal benefit) are calculated as: MC=change in TCchange in…
Q: Consider the main approaches to environmental policy— lawsuits, command-and-control laws and…
A: Any measures being taken by the government or any other private organization with respect to the…
Q: raffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000…
A: The public good refers to good that satisfies two conditions: non-exclusion and non-rival.…
Q: Assume the EPA decides to impose a carbon tax of $50/ton. Super Polluter, Inc., pictured below, is…
A: Given, Abatement cost id defined as the cost of reducing environmental hazards or negatives such as…
Q: 1. Provide three reasons why it is important for environmental economists to adhere to a code of…
A: Spillover effects: It refers to those effects that are unrelated events that occur in an economy.…
Q: $4.00 Marginal Cost (per ton) of pollution reductionton $3.00 $2.00 $1.00 O a). $1.10 Ob). $0.90…
A: we are given with the graph, On x axis we have the pollution reduction and on y axis we have…
Q: Marginal social cost, marginal social benefit $25 22 20 17 15 12 10 7 52 MSC X MSB 1 L 35 40 45 50…
A: Social optimal quantity refers to that level of quantity which maximises total or overall welfare…
Q: 3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The…
A: Social externalities refer to the indirect impacts, whether positive or negative, that a rancher's…
Q: Firm A currently dumps 161 tons of chemicals into the local river. Firm B currently dumps 127 tons…
A: The marginal cost of emissions is the extra environmental impact incurred as a consequence of…
Q: Marginal Cost to Eliminate (Dollars) First Unit Second Unit Third Unit Fourth Unit Firm A 54 67 82…
A: The polluter incurs a cost on every unit of emission that it lowers, which gets measured by the…
Q: 1. If you were to graph a measure of pollution on one axis and a level of economic activity (such as…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Combating emissions that lead to global warming differs from other types of pollution abatement…
A: The global warming is a worldwide concern. These occurs due to various emissions that leads to…
Q: Cost-effective pollution control means that... Mark all that applies. Group of answer choices the…
A: Cost Effective Pollution or emission control is defined as the costs that are related with the…
Q: Macmillan Learning (Table: Total Cost and Total Individual Benefit Received from Sanitation Workers)…
A: The social benefits arise when a product or service causes a positive effect on society as a whole…
Q: The market below has an externality. Which area represents the total cost or benefit of the…
A: In a market, the society optimizes its social surplus by producing and consuming a unit of good…
Q: When is the definition and enforcement of property rights especially difficult? Group of answer…
A: Property Rights is defined as the legal rights to own and use resources in an economy. The resources…
Q: PRICE (Dollars perton) 8 81 72 63 54 45 30 27 18 9 0 Demand 020 40 60 80 100 120 140 160 180 200…
A: Correcting negative externalities involves implementing policies such as taxation, subsidies, and…
Q: The following companies all manufacture widgets and dump tons of glop into the air. Costs to clean…
A: The government sets a total pollution cap of 100 tons of glop. This means that the total amount of…
Q: 6. Achieving lower pollution Suppose a political candidate criticizes a government pollution permit…
A: The political candidate's argument disputes with standard economic idea because tradable pollution…
Q: The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The…
A: Given graph: In the given graph, when both firms pollutes 46 units each Cost of abatement for firm…
Q: Nail Polish Externalities) In the figure, Sp (MPC) represents the private supply curve of a…
A: Externalities are side effects that are borne by the third parties who are not involved in the…
Q: What level of pollution reduction gives the smallest benefit for money spent?
A: Abatement cost refers to the cost that a company or an individual has to incur to reduce, or…
Q: A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city.…
A: A marginal benefit means the maximum amount a consumer is willing to pay for an additional good or…
Q: A local school administrator observes an increase in the number of flu cases in the public schools…
A: Externality refers to the external cost and benefits that are imposed on third parties without their…
Q: Use the model of environmental pollution to model the following changes in a polluting industry to:…
A: Environment pollution: It refers to the bad surroundings that cover our nature due to which the…
Q: 2. Bernard and Elton are neighbors. Bernard never mows his lawn, rakes his leaves, or trims s…
A: Negative externalities are the negative side effects of economic activities which are borne by the…
Q: The town of Chefsmeadow has 100 residents. Each resident has a car. Each car produces $30 worth of…
A: Total Residents = 100 Total Cars = 100 Per Person Per Car Cost of the Pollution = $30 Total Cost to…
Q: Vork (Ch 10) 2. Efficiency in the presence of externalities Cars impose 'many external costs on…
A: The correct answer is given in the second step.
Q: Describe a situation where at least one homeowner would be made worse off by this cleanup policy.…
A: 1. A scenario wherever a minimum of one home-owner would be created worse off by this cleanup policy…
Step by step
Solved in 3 steps with 4 images
- Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…5. Suppose that Capsule Corporation and Red Ribbon Company are producers of spaceships. In their production processes, each firm emits 50 units of pollution. Now, the government wants to reduce smoke emissions by 40% by issuing tradable permits. The cost of abatement of Capsule Corporation is Php 50 per unit of pollution, while the cost of abatement of Red Ribbon Company is Php 30. Suppose the tradable permits sell at Php 40 and the government allocates the permits equally between the two firms. a. If Red Ribbon Company sells 10 permits to Capsule Corporation, what is the total cost in achieving the goal of reducing emissions by 40%? Instead of using tradeable permits, the government regulates the firms by forcing them to emit 30 units of pollution each. What is the total cost of this policy? What policy is more efficient to implement, the tradeable permits or the government regulation? b. c.3. Suppose the EPA wants to reduce pollution to the socially optimal level. Based on the data in the table below, what is the optimal level of pollution? Total cleanup Total Total (tons) Benefit Cost 50 2 85 18 3 115 28 4 140 39 5 160 51 179 63 7 197 76 8 214 90 230 105 10 245 120 11 259 137 12 273 156 13 286 177 14 299 200 15 311 225
- Refer to Figure 5-6. One way to obtain the economically efficient amount of chicken pox vaccinations is for governments to subsidize these vaccinations. What is the size of the per-vaccination Pigovian subsidy that the government must provide to internalize the external benefits? (PE - PG) (PF - PG) PE (PE - PF)ЕOC 11.04 Consider two car factories, one run by Ford and the other run by Honda, that both create pollution. The government wants to reduce how much these two factories pollute by 40 tons, so only allow factories to pollute if they have a permit. Each factory is given 20 pollution permits. A business can use a permit to emit one ton of pollution or they can sell it to another business (and lose the ability to pollute). To lower pollution it costs Ford $200 per ton of pollutant removed and it costs Honda $100 per ton removed. After Ford and Honda have met to trade their permits with each other, what we expect to happen? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Honda emits 20 tons of pollutants and Ford emits 20 tons of pollutants. a Honda no longer pollutes and Ford does not lower how much it produces. Honda increases its pollution and Ford lowers its pollution. Ford no longer pollutes and Honda does not lower how much it…Back to Assignment Attempts Keep the Highest / 2 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. Which of the following types of private solutions to the externality of pollution has occurred in this case? O Charities O Integration of different types of businesses through merger or acquisition O Moral codes and social sanctions O Contracts It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of Grade It Now Save & Continue…
- Cap and Trade policies are among the best environmental policies being used. However, it can be argued that they allow inefficient, high polluting sources to continue polluting. Is there a better way? What changes if any, would you make if you were the head of the EPA (Environment Protection Agency).Suppose the marginal cost (MC) and marginal benefit (MB) of reducing nitrogen oxide air pollution are illustrated in the figure. Suppose initially 3 million tons of nitrogen oxides are being reduced. What is the net benefit to society of increasing the elimination of nitrogen oxide air pollution to 6 million tons? The net benefit is $ million. (Enter your response rounded to one decimal place.) Cost or benefit ($ per ton) 500- 450 400- 350- 300- 250- 200- 150- 100- 50- 0- 0 1 MC 2 3 4 5 6 7 8 Reduction (millions of tons per year) MB 9 10You are an industry analyst that specializes in an industry where the market inverse demand is P = 300 - 4Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 15Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.check all that apply Pollution taxes Nonrival consumption Pollution permits
- Consider the table. Number of street lamps Marginal benefit (in $) 123 4 5 6 7 30 26 22 18 14 10 6 Suppose that a small town wants to install street lamps, which are nonrival in consumption and nonexcludable. Each of the 25 people in the town value street lamps according to the given schedule. Street lamps each cost $250 to install. Use this information to answer the questions. What is the socially optimal number of street lamps? Suppose that 20 of the 25 townspeople decide that they will not help pay for street lamps, and will instead enjoy (for free) the street lamps built by the other five people. What is the maximum number of street lamps that will be built by the remaining five people? Suppose the town government decides to build street lamps and pay for the street lamps through taxation. How much should each person be taxed to pay for the optimal number of street lamps if everyone is taxed equally? S I street lamps street lampsPRICE (Dollars per ton) 70 63 56 49 42 35 28 + 21 T 14 7 0 Demand +++ 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Millions of tons) Graph Input Tool Daily Demand for Pollution Rights Price (Dollars per ton) Quantity Demanded (Millions of tons) 7 360 Suppose the government has determined that the socially optimal quantity of particulate matter is 120 million tons per day. One way governments can charge firms for pollution rights is by imposing a per-unit tax on emissions. A tax (or price in this case) of $ of particulate matter emitted will achieve the desired level of pollution. ? per ton Now suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the desired level of pollution. Instead, it auctions off tradable pollution permits. Each permit entitles its owner to emit one ton of particulate matter per day. To achieve the socially optimal quantity of pollution, the government auctions off 120 million…O Completed 20 out of 20 All of these will lead to market failure EXCEPT if the good O is a public good. creates externalities. is a private good. O is a common property resource. LAPTOP LOGIN USERNAME: stude cer PASSWORD: Brow.