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. The graph illustrates the unregulated market for pesticide.When the factories produce pesticide, they also create waste which they dump intoa lake on the outskirts of a small town.The marginal external cost of the dumped waste is equal to the marginal private cost ofproducing pesticide (that is, the marginal social cost of producing the pesticide is double themarginal private cost).If the pesticide factories own the lake, how much pesticide is produced?If the pesticide factories own the lake, the quantity of pesticide produced istons a week. 360-320280Price and cost (dollars per ton)240200-S160-120-80-401020304050งBQuantity (tons per week)>>> Draw only the objects specified in the question.

Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…

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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.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...

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Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
Give an example of a positive externality and an example of a negative externality.
K The graph illustrates the unregulated market for pesticide. When the factories produce pesticide, they also create waste which they dump into a lake on the outskirts of a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost). What is the quantity of pesticide produced if no one owns the lake and what is the efficient quantity of pesticide? What is the deadweight loss? *** If no one owns the lake, the quantity of pesticide produced is 30 tons a week. The efficient quantity of pesticide is 20 tons a week. If no one owns the lake, the deadweight loss is $ >>> Answer to 2 decimal places. a week. 1260 1080- 900- 720- 540- 360- 180- 0- 0 Price (dollars per ton) | 4 S D 30 60 90 120 150 180 210 240 270 300 Quantity (tons of pesticide per week) Q P
The graph illustrates the unregulated market for pesticide. When the factories produce pesticide, they also create waste which they dump into a lake on the outskirts of a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost). If the pesticide factories own the lake, how much pesticide is produced? If the pesticide factories own the lake, the quantity of pesticide produced is tons a week. 1080- 960- 840- 720- 600- 480- 360- 240- 120- 0+ 0 Price and cost (dollars per ton) 30 S 120 D 60 90 Quantity (tons per week) >>> Draw only the objects specified in the question. Q Q 150
The graph illustrates the unregulated market for uranium. When the mines produce uranium, they also create waste which they dump into a river that runs through a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing uranium (that is, the marginal social cost of producing the uranium is double the marginal private cost). If no one owns the river and the government levies a pollution tax, what is the tax per ton of uranium that achieves the efficient outcome? D Draw a point to show marginal social cost if production is 240 tons. Draw the MSC curve and label it. Draw an arrow at the efficient quantity that shows the marginal external cost. The tax per ton of uranium that achieves the efficient outcome is $ 2160- 1920- 1680- 1440- 1200- 960- 720- Price and cost (dollars per ton) 480- 240- 0- 0 60 240 S D 120 180 Quantity (tons per week) >>> Draw only the objects specified in the question. 300 Q Q
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The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Which quantity is socially optimal (i.e. what is the efficient quantity)? What is the deadweight loss generated by the externality?
Air pollution creates a negative externality—a cost suffered by a third party as a result of an economic transaction. A standard solution to a negative externality is a Pigouvian tax, a tax that raises the marginal private cost of pollution emissions to the level of the marginal social cost. The socially optimal quantity of pollution emissions is then determined by the intersection of the marginal private benefit, or demand, curve and the marginal social cost curve. The article notes that "putting a dollar value on the benefits of cleaner air has been difficult." Assuming this problem has been resolved, in the accompanying diagram, move the endpoints of line Smarginal social cost to show the marginal social cost curve. Then move the line labeled "Tax" to show the amount of the tax needed to limit emissions to the socially optimal level.
The graph illustrates the market for pesticide with no government intervention. When the factories produce pesticide, they also create waste, which they dump into a lake on the outskirts of town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost.) What quantity of pesticide is produced if no one owns the lake? If no one owns the lake, the quantity of pesticide produced is tonnes a week. The efficient quantity of pesticide is tonnes a week. 480- 400- 320- 240- 160- 80- Price (dollars per tonne) 40 80 120 160 Quantity (tonnes of pesticide per week) S D 200 N
The graph shows the unregulated market for electricity. Suppose that at every quantity produced, the marginal external cost of electricity equals the marginal private cost of production. To show the market outcome, draw the following four items on the graph: 1. Draw a point to show the marginal social cost when the utility produces 500 kilowatts per day. Label it 1. 2. Draw the marginal social cost curve. Label it MSC . 3. Draw a point to show the electricity produced and its marginal social cost. Label it 2. 4. Draw a shape to show the deadweight loss created. Label it DWL . >>> Draw only the objects specified in the question.
K The diagram to the right illustrates the market for outdoor concert tickets in a park in the middle of a residential area in a particular town. Ticket prices are measured in dollars (the grid is drawn for $2.50 increments) and ticket quantities are measured in thousands. The locals are not happy about the increased traffic congestion and noise that accompany each concert. Note that supply curve S, represents the marginal private cost of the concerts. What is the cost of the externality per concert ticket? The cost of the externality is $ per concert ticket sold. (Round to the nearest cent as needed.) $55 $50 $45 $40 $35 $30-$27.50 $25- $20 $15 $10 $5 $0 P 0 $20.00 12 $₂ 3₁ 10 15 a of Tickets (Thousands)