Environmentalists in Tennessee brought suit against the Champion Paper Company of North Carolina for polluting the Pigeon River,which flows from North Carolina into eastern Tennessee. Tennessee claimed that the coffee-colored water smelled bad and would notsupport fishing or swimming. Environmentalists requested that the river be restored to its pristine state, or the water quality it hadbefore the coming of industry. The Environmental Protection Agency (EPA) heard the suit and applied an efficiency standard. In otherwords, the EPA set limits on how much pollution the paper company could release (though this number was not zero).Adjust the following graph to indicate the negative externality.PRICE (Dollars per sheet)21109SupplyDemand800 1 2Demand791053 4QUANTITY (Sheets of paper)SupplyWhen the EPA imposes standards on the paper company, the quantity of paper produced willcompany will. The new equilibrium price is $, and the price of paper from thisper sheet of paper, whereas the new equilibrium quantity issheets of paper.

the quantity of paper produced will decrease , and the price of paper from this company will…

Answered: Environmentalists in Tennessee brought…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exercise 2.23-✰✰✰ Challenging Question ★★★. The Mondevil Corporation operates a chemical plant, which is located on the banks of the Sacramento river. Downstream from the chemical plant is a group of fisheries. The Mondevil plant emits by-products that pollute the river, causing harm to the fisheries. The profit Mondevil obtains from operating the chemical plant is $II > 0. The harm inflicted on the fisheries due to water pollution is equal to $L> 0 of lost profit [without pollution the fisheries' profit is $A, while with pollution it is $(A - L)]. Suppose that the fisheries collectively sue the Mondevil Corporation. It is easily verified in court that Mondevil's plant pollutes the river. However, the values of II and L cannot be verified by the court, although they are commonly known to the litigants. Suppose that the court requires the Mondevil attorney (Player 1) and the fisheries' attorney (Player 2) to play the following litigation game. Player 1 is asked to announce a number x >…
Please think of one example of a product that you use on a regular basis for which some of the cost of production or consumption are externalized. Please explain. What will be the long-term cost for or impact on society of this externalization? How much more would you be willing to pay for that product in order to have all costs factored into the price?
Refer to the table below, which describes the market for cigarettes in terms of marginal benefits, private marginal costs, and private+social marginal costs. Marginal benefits Private marginal costs Private + social marginal costs $8 $12 $4 $10 $6 $10 $12 $8 $8 $6 $10 $14 $4 $12 $16 Calculate the equilibrium quantity of cigarettes that would be produced and sold if society incorporated the negative externalities of cigarettes by taxing cigarettes. Type your answer... Quantity 100 200 300 400 500 Previous DE O 2º W 3 E a Q $ 4 R % 5 ♫ JMA T A 6 MacBook Pro Y & 7 W D U 8 P 1+ I S ( 9 cricut O 0 P 13 { ( Next O
shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity? P Qd Qs1 Qs2 $20 0 10 8 $18 1 9 7 $15 2.5 7.5 5.5 $12 4 6 4 $10 5 5 3 $5 7.5 2.5 0.5
The table below shows the supply and demand conditions for a furniture factory that pollutes the air. The third column (Qs1) represents a supply curve without accounting for the social cost of pollution. The fourth column (Qs2) represents the supply curve when the firm is required to account for the social cost of pollution. Price QD Qs1 Qs2 $10 450 400 250 $15 440 440 290 $25 430 480 330 $30 420 520 370 $35 410 560 410 Answer the following: a) What is the negative externality in this situation? b) Identify the equilibrium price and equilibrium quantity when we account only for private costs. c) Identify the equilibrium price and equilibrium quantity when we account for the social costs. d) How does accounting for the externality affect the equilibrium price and quantity? JUSTIFY your answer!
The table below shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social costs. How does accounting for the externality affect the equilibrium price and quantity? Price Qd Qs1 Qs2 $20 0 10 8 $18 1 9 7 $15 2.5 7.5 5.5 $12 4 6 4 $10 5 5 3 $5 7.5 2.5 0.5
Discuss five benefits of environmental regulation?
The market for plasticans is perfectly competitive. Market Supply is given by Q=6P and Market Demand is given by Q=487-3P. Each extra unit of plastican produced imposes a negative externality of $5. What is the total cost of the externality at the market equilibrium? Enter a number only, no $ sign. Do NOT include a negative sign. 1,623.33
Should the cost of compliance be considered when imposing air pollution regulation? For example, should the Environmental Protection Agency (EPA) consider costs when it regulates emissions from power plants?
Describe a situation where you experienced a positive or negative externality or free-riding by you or someone else. Why are these situations problematic?
The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an emission tax. Why might the owner of the mill prefer an emission standard to a technology standard that would produce the same level of emissions? a Because with emission standards the polluter is more flexible in selecting the technology that will minimize her abatement cost Ob. Because polluters usually try to stick to their existing technology O C. Because it has been proven to be easier to implement O d. Because polluters, as all producers are suspicious about new technologies
USE THE GRAPH! There is a negative externality from Lyft rides (TRAFFIC) of $0.60 per mile. If the city still charged a $0.60 tax, what would be the deadweight loss? DWL=

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