The firms in a perfectly competitive market for a good create pollution, the costs of which do not enter into the firms' costs. The government decides to impose a domestic Pigovian tax, t, as a way of addressing this problem. Figure 11 shows this scenario. Price P1 P2 P3 MC5 MCp+t MC-S D Q1 Q2 03 Quantity Figure 11: A Pigovian tax on suppliers Based on Figure 11, select the correct answer to match this description: The quantity demanded after the tax is implemented a. Q1 ○ b. Q₂ ○ C. Q3

In the graph above, what areas comprise producer surplus after a Pigovian tax has fully internalized the negative externality? Price Social Marginal Cost A Supply (Private Marginal Cost) K E 'H В Demand Quantity O C+F+l+D+G O B+C+D C+D O A+B+E O G+F+E

Price per bin 120 110 100 90 80 70 60 50 40 30 20 10 $800 $900 $450 1 $1250 1 I 1 + V D The figure represents the market for apples. Assume there are no externalities. Suppose a sales tax of $40 per bin of apples is levied on consumers of apples. The after-tax supply curve is labeled S+t. What is the dollar amount of the REVENUE collected by this tax? To review this concept, see the section Taxes and Efficiency. S+t S 10 20 30 40 50 60 70 80 90 100 Bins of apples

11. Compared to a good with no externalities, a good with a negative externality will appear to have experienced a OIncrease in Supply ODecrease in Supply Olncrease in Demand ODecrease in Demand at each corresponding price...

Only typed answer and please don't use chatgpt    The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q.   1A. How many leather is produced in the free market if the externality is not corrected.   B) What is the free market price of the leather if the externality is not corrected?   C) What is the social marginal cost?

O Macmillan Learning Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of approximately $150 per battery. Please shift the appropriate curve or curves to reflect this social cost. The new price is about $ The new quantity is Ithousand. Price (S) 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Supply Demand 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Quantity of Laptops (thousands)

how a tax on pollution affects the market equilibrium, consumer surplus, and producer surplus (Ctrl) ▼

Assume integer quantities. Assume the following supply and demand schedules for a perfectly competitive market without externalities. 1 3 4 6 MWTP $32.50 $27.50 $6 $25.50 $12 $20.50 $12.50 $7.50 $4.50 MC $2 $16 $21 $30 $32 What is total surplus in equilibrium? Round to two decimal places and do not include the currency symbol. If your answer is $1.125, enter 1.13.

discuss whether or not the government of a large country with a large industry producing cigarettes shoud ban the production of cigarettes.

The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park. Each permit allows the owner to release one tonne of pollutants into the atmosphere.  Price perPollution Permit Quantity of Permits $4,500  75 4,000 150 3,500 225 3,000 300 2,500 375 2,000 450 1,500 525 a. If no fee for a pollution permit were charged, how many tonnes of pollutants would be discharged into the atmosphere, assuming a straight-line demand curve?    Quantity:  tonnesb. Suppose government were to set a fee of $3,500 per pollution permit. How many tonnes of pollutants would now be dumped? What is the total revenue received by government?    Quantity:  tonnes     Total revenue: $ c. Suppose that a new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for pollution permits in the industrial park drops by 150 tonnes. Assuming that government holds the permit fee at $3,500, how many tonnes of…