do fast •Given the tariff on output and subsidy on chemicals calculate the transfer in private profits caused bythese policies.Tradable input cost ($ 000)RevenuesCostsProfitInputsFactorsPrivate7,0009002,0004,100Social5,0001,0002,2001,800Divergence2,000-100-2001700

Based on the image provided, the task is to calculate the transfer in private profits caused by the…

Answered: •Given the tariff on output and subsidy…

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 14RQ: What is an externality?

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•Given the tariff on output and subsidy on chemicals calculate the transfer in private profits caused by these policies. Tradable input cost ($ 000) Revenues Costs Profit Inputs Factors Private 7,000 900 2,000 4,100 Social 5,000 1,000 2,200 1,800 Divergence 2,000 -100 -200 1700