Noise generated by an airport best illustrates.  market power. overproduction of private goods. an externality. an inequity.

7) A Detroit factory is polluting more than the socially optimal amount. The city government then imposes a lump sum tax on the business, but the business didn't change how much they were polluting. Explain what was wrong with the city's decision.

Transcribed image text: 1. Crime prevention is considered a public good. a) What are public goods and services? Explain why public goods and services are provided.

1. Brazilian rain forests reduce global air pollution and support biodiversity. Rain forests are being cut down to support expanded production of beef for export to the US and other countries.   1. Concisely describe the market failure that leads Brazil to reduce the size of its rain forest.     2.Graph the market for beef in the US showing both the unregulated and efficient outcome.     3.In the efficient market, the negative externalities of deforestation are factored into the market price, which leads to a lower quantity of beef produced (Q2) and a higher price (P2) than in the unregulated market.   4.Explain how a tax on beef in the US would impact the price and quantity of beef and the quantity of air pollution. Graph the market for beef with a tax and discuss if/how efficiency changes after the tax.   5.A second proposal is to subsidize the development of meat substitutes (e.g. Beyond Beef, Impossible Meat, etc). Graph the impact of the entry of meat substitutes on the market for…