Question E4/Stretch Problem If we apply the idea of nitrate contamination (the context of the Unit 3 model) to the negative externality context, describe and explain how the use of a tax to move the market to a social equilibrium compares to the idea of getting to the optimal level of abatement (or the optimal level of contamination) through a government's policy choice. That is, compare and contrast the objectives of the government as well as the mechanisms involved in the two different approaches of the two different models. NOTE: This problem is designed to see how you look at the problem and less focused on getting everything right. If you are short of time, you may want

Question E4/Stretch Problem If we apply the idea of nitrate contamination (the context of the Unit 3 model) to the negative externality context, describe and explain how the use of a tax to move the market to a social equilibrium compares to the idea of getting to the optimal level of abatement (or the optimal level of contamination) through a government's policy choice. That is, compare and contrast the objectives of the government as well as the mechanisms involved in the two different approaches of the two different models. NOTE: This problem is designed to see how you look at the problem and less focused on getting everything right. If you are short of time, you may want

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 3P

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Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6
In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…
"Since the occurrence of COVID-19 health crisis in Gaza in early 2020, severalexternalities existed during the partial, and complete economic lockdown."Answer the following questions: b. Give an example on an externality (domestic or international) that occurredduring COVID-19 economic crisis.
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Clearly state the application of the benchmarking concept on social policy implementation
. Some dissenting scientists at Environment Canada disagree with the estimate of $1.50 for theenvironmental externality. They believe that the incidence of the externality is not constant acrossdifferent levels of production; instead the size of the externality is proportional to the level of output.That is, the larger is the output, the larger is the externality. Their research suggests that the truesocial cost of cereal production diverges from private costs at every level of production by an amountequal to ten percent of production (note: ten percent, not ten percentage points).The government would like to know the economic effects of implementing a tax to internalise theexternality in this case. Draw the diagram for this market and policy. Solve for all relevant Ps and Qs.Calculate producer surplus
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