To compare price and quantity in a competitive industry and green industry.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Just Part D please, this is for environmental economics

3. Consider a single firm that manufactures chemicals and generates pollution through its emissions E. Researchers have estimated the MDF and MAC curves for the emissions to be the following: MDF = 4E and MAC = 125 – E Policymakers have decided to implement an emissions tax to control pollution. They are aware that a constant per-unit tax of $100 is an efficient policy. Yet they are also aware that this policy is not politically feasible because of the large tax burden it places on the firm. As a result, policymakers propose a two- part tax: a per unit tax of $75 for the first 15 units of emissions an increase in the per unit tax to $100 for all further units of emissions With an emissions tax, what is the general condition that determines how much pollution the regulated party will emit? What is the efficient level of emissions given the above MDF and MAC curves? What are the firm's total tax payments under the constant $100 per-unit tax? What is the firm's total cost of compliance…

2. Answer the following questions as they relate to a fishery: Why is the maximum sustainable yield not necessarily the optimal sustainable yield? Does the same intuition apply to Nathaniel's decision of when to cut his trees? What condition will hold at the equilibrium level of fishing in an open-access fishery? Use a graph to explain your answer, and show the level of fishing effort. Would this same condition hold if there was only one boat in the fishery? If not, what condition will hold, and why is it different? Use the same graph to show the single boat's level of effort. Suppose you are given authority to solve the open-access problem in the fishery. What is the key problem that you must address with your policy?

Answer 2

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 6

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 7

Chapter 14, Problem 1SQP

To determine

To compare price and quantity in a competitive industry and green industry.

Answer 8

Expert Solution & Answer

Explanation of Solution

When a competitive industry sells pollution generating product, the price of the product will be lower and the quantity produced will be larger than the green industry. Externality cost incurred by the negative externality of the product is not included in the price of the product in the competitive industry. This implies that the price charged is lower than the actual cost and a lower price results in a higher quantity demanded of the product. However, the green industry includes the externality cost for pricing, and hence the price charged will be higher.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Externality: Externality is the benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.

Answer 12

Ch. 14.2 - Prob. 1.1GE Ch. 14.2 - Prob. 1.2GE Ch. 14.2 - Prob. 1.3GE Ch. 14.2 - Prob. 2.1GE Ch. 14.2 - Prob. 2.2GE Ch. 14.2 - Prob. 2.3GE Ch. 14.2 - Prob. 2.4GE Ch. 14 - Prob. 1SQP Ch. 14 - Prob. 2SQP Ch. 14 - Prob. 3SQP

To compare price and quantity in a competitive industry and green industry.

To compare price and quantity in a competitive industry and green industry.

Explanation of Solution

Want to see more full solutions like this?

Chapter 14 Solutions