Answered: 1. Discuss how pollution violates the…

Business

Economics

1. Discuss how pollution violates the justice or fairness that characterizes a competitive free market.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: In the analysis of the optimal level of a public good, suppose that each person's utility function…

A: In this question:- The utility function is quasilinear=U=UiG+Pi Where G is unique good which is a…

Q: A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage…

A: The external rate of return (ERR) refers to the rate of return on a project in which any "extra"…

Q: charged at 5% compounded semi-annually, a sinking fund is created at a rate of 6% compounded…

A: Amount Borrowed = 250,000 Interest rate = 5% Compounding is done semi-annually Years to repay = 5…

Q: Suppose, the GDP of a country is 50 million, net factor income from abroad is 20 million and…

A: Given information: GDP: 60 million Net factor income from abroad: 20 million Depreciation: 10…

Q: Could you explain more on how could it provide a better protection on the interest of individual's…

A: A Deed of Mutual Covenant and Management Agreement in short is DMC that controls the rights and…

Q: 1. How might advertising make markets less competitive? How might it make markets more competitive?…

A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…

Q: Question 3 The board of a firm wanted to get value for money by employing the right number of…

A: We are going to use single variable maximisation method to answer this question.

Q: unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an…

A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…

Q: Process engineering and inventory management focuses on what is being carried - work, cash, and…

A: Inventory management, in contrast to process engineering, which oversees work design, resources, and…

Q: A process has a cycle time of 10 minutes. The throughput time is 10 hours. If the throughput time is…

A: The net duration needed to manufacture a product covering from the start to the end is termed…

Q: Question Assume a competitive market is in equilibrium. There is an increase in demand, but no…

A: The curve that depicts various quantities of goods and services being demanded by individuals at…

Q: The central bank is selling $100 worth of bonds payable in one year. The price it gets today is $98.…

A: Here, given information is: Future value (FV): $100 Present value (PV): $98 Time period (N): 1 To…

Q: True or False ? Why ? In the long run, Betty’s factory produces 10,000 widgets with cost-minimizing…

A: Production Equilibrium is where Slope of isoquant is equal to the slope of iso cost curve . Or…

Q: Compare total profits and the total output in the Cournot equilibrium to a monopolist’s…

A: In cournot market there is more than one firm and in monopoly there is a single firm.

Q: Why do banks choose to securitise their assets? Explain how securitisation may exacerbate the…

A: Answer - Securities :- These are a financial instrument which has non-negotiable and has…

Q: Elasticity of demand solve This question on Almarai company solve all as they related and use Excel…

A: Price ELASTICITY of demand refers to the percentage change in quantity demanded due to the…

Q: to maximise profit, they should use be wer to one decimal place. of inpu

Q: Define the economic efficiency. Explain in detail.

A: When every scarce resource in an economy is utilized and divided among producers and consumers in a…

Q: QUESTION 3 One view of the role of Banks is that they create liquidity. What does this liquidity…

A: Commercial banks plays a significant role in the growth of an economy as it creates liquidity to…

Q: 5. A used machine costs $20,000 to purchase. It has an annual maintenance cost of $20,000, a salvage…

A: Initial cost = $20,000 Annual maintenance cost = $20,000 Salvage Value = $5,000 n = 10 years i = 10%

Q: What evidence exists that cultural diversity is increasing in the United States?

A: Cultural diversity is about knowing, understanding and accepts different traditions, cultures,…

Q: Hypotheses Which of the following statement(s) is/are true if all of Stahl et al’s hypotheses are…

A: When compared to a generic alternative, brand equity refers to the value a firm obtains through its…

Q: Reasons for changes in demand and supply, use demand and supply analysis to explain the high…

A: In any market, a change in the price of the good will have a significant impact on the quantity…

Q: Briefly describe the pattern for the U.S, economy with respect to its current account balance from…

A: The current account of the balance of payment incorporates a nation's key movement, like capital…

Q: What is inflation ? Briefly explain the costs of inflation . Use your outlined cost of inflation…

A: The expenses that are being incurred for carrying out day to day transactions of a business or…

Q: What kind of monetary policy should the Fed use if the economy is currently in the northwest area of…

A: Inflation is the rise in average general price level over period of time . Here , inflation and…

Q: Suppose in an economy with a tariff on the import of sugar, if the domestic demand for sugar…

A: Given

Q: Based on your explanation question 1 above, discuss how that relationship between the elasticity of…

A: Introduction Labor economists disagree if the elasticity of labour demand is greater than or less…

Q: Consider two variable linear regression model: Y = a + Bx+u The following results are given below:…

A: Estimates of parameter are Alpha^ of Alpha Beta^ of beta.

Q: An agent (a financial institution or individual financial investor) that has agreed to deliver a…

A: Answer: An investor or agent who has agreed to deliver a specific asset (but not yet own them) to…

Q: (a) Examine the view that it is possible to escape from the "impossibility" result of Arrow by…

A: Arrow's Impossibility Theorem is defined as a paradox of social choice which portrays that it is…

Q: a) Explain the practical relevance of the mean-variance model of portfolio selection

A: Introduction: Portfolio selection theory identifies the best investment decision and helps in…

Q: Refer to the accompanying table. Corey's opportunity cost of making of a pizza is delivering Pizzas…

A: Opportunity cost refers to the next best alternative forgone.

Q: In considering the merits of lengthening the duration of unemployment benefits one should consider?…

A: Unemployment benefit programmes exist in every industrialized economy to safeguard employees from…

Q: (b) There are three people and two goods in an economy. The utility functions and initial bundles…

A: Utility function can be defined as the measure for a group of goods and services preferred by…

Q: what is the present worth (PW) for the following cash flow?. Use (i-6% Annual payment= $100 per year…

A: Given the number of years = 9 Interest rate, r = 6% Annual payment till 9 years = $100

Q: d. What is the socially optimal level of emissions for the industry per month? What would be the…

Q: Given the following bids to buy used textbooks to a market, calculate the price elasticity of demand…

A: "Price elasticity of demand measures how sensitive the quantity demanded of a good is to it's own…

Q: What has been the major role(s) played by professional accounting bodies in the development of…

A: A professional accounting body refers to an association of accountants working in a particular…

Q: For any given job, how do the economy-wide labour market conditions affect a worker’s bargaining…

A: The labour market, also known as the job market, is the supply and demand for labour, with employees…

Q: What is meant by form utility?

A: Utility is an economic term which refers to satisfaction.

Q: Is it possible for a country to gain from trade even when it has lower productivity than its trading…

A: Is it possible for a country to gain from trade even when it has lower productivity than its trading…

Q: question one What strategies and tactics can be employed during negotiation, and when or why will…

A: Features of negotiation: 1. Any negotiation requires the presence of at least two parties. Both…

Q: Trade unionism and feminist politics are incompatible, as evidenced in U.S. history. Do you agree?

A: Trade means the export and import of goods and services over a period of time. Trade is the exchange…

Q: Q1. Consider the adverse selection model, where the ability of each worker, 0, can be 1, 2 or 5.…

A: Ability of each worker = 1, 2,or 5 Probability associated to each = (1/3,1/6,1/2) Reservation Value…

Q: Consider a lottery with three possible outcomes: $120 with probability 0.3, $80 with probability 0.2…

A: Given:- Three possible outcomes:$120 with probability 0.3$80 with probability 0.2$50 with…

Q: A company paid $200,000 eight years ago for a specialized machine that has no salvage value and is…

A: Marginal cost is the cost that the producer spends to fabricate one extra unit of the good. The…

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720-SP…

A: Burden of tax is the difference between price paid by consumers after tax and price paid by…

Q: For the demand function (image 1) and supply function (image 2) a) the equilibrium price is: b)the…

A: Answer: Given, Demand function: fx=x-82 Supply function: gx=x2 (a). Let us equate the demand and…

Q: Tech Engineering in TN is making a product for the overseas market. The following cost data for the…

A: The Break even point analysis is in great use and widely recognised methods to make various rational…

Concept explainers

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

1. Discuss how pollution violates the justice or fairness that characterizes a competitive free market.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not?
What does a point inside the production possibility frontier represent?
A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?
Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.
1. Explain the meaning and importance of studying environmental policy?
Chapter 8 in Tietenberg and Lewis looks at climate change, the most important environmental issue of our time. Economists generally agree that putting a price on carbon is the best approach to reducing climate warming carbon emissions. The two main strategies for doing this are carbon taxes and the cap and trade version of emissions trading. Discuss the pros and cons to these two approaches to pricing carbon. Why do economists favor these kinds of market-based strategies to pollution control over “command and control” approaches such technology standards?
ītion, please answer the following questions: If society wishes to reduce pollution, why is it more efficient to tax the pollution rather than set a limit on pollution? 2. Why is it more efficient to tax pollution than to tax the output that produces pollution?
There are costs/effects associated with pollution control. Discuss two costs to the U.S economy. In addition, name and use a two industry example(,one polluting and affecting the operations of the other(non polluting), explain how this pollution leads to inequity and inefficiency.
Explain why zero pollution should not be the goal for a society.
Explain: “Without a market for pollution rights, dumping pollutants into the air or water is costless; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter.” What is the significance of this opportunity cost to the search for better technology to reduce pollution?
Answer questions attached and questions typed below: c. The system of tradable permits results in (lower, higher, or same) quantity of pollution as compared to the quota. d. It leads to an (equal, lower, or higher) total cost of pollution reduction and thus is (equally, less, or more) efficient than the quota alone.