Determine the new externality base price

Reference no: EM13176093

Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of the goods that we buy. For instance, since coal fire power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not adequately high enough. Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality base, price?

Reference no: EM13176093

Questions Cloud

When does a real gas behave like an ideal gas : A mixture of four gases exerts a total pressure of 860 mm Hg. Gas A and B, both exert 220 mm Hg, Gas C 110 mm Hg. What pressure is exerted by gas D?- When does a real gas behave like an ideal gas?

Explain the reaction of ammonia with oxygen to form nitrogen : How many grams of NO could be formed from a mixture of 44.7 g of NH3 and 42.7 g of O2? 2. How many grams of NH3 would remain?

Calculate the molecular mass of the nonionic solutes : Calculate the molecular mass of the nonionic solutes: 8.02 g of solute in 861 g of water lower the freezing point to -0.430 degrees C.

Calculate the moles of silver bromide and magnesium nitrate : calculate the moles of silver bromide and magnesium nitrate produced by 85 mol of magnesium bromide reacting with silver nitrate.

Determine the new externality base price : You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality..

Explain how to correct for partial pressure of water vapor : explain how to correct for the partial pressure of water vapor when calculating the partial pressure of a dry gas that is collected over water.

What is the density of the gas : An unknown sample of gas was put into a jar with a sample of nitrous oxide gas. The density of the gas is 1.098 g/L at 25 degree celcius when the atmospheric pressure is 756 torr.

How does the brightness of the light souece affect outcome : How does the brightness of the light souece affect the outcome of the expirement using a certian frequency of light?

Discuss the effect of a volume increase in sales : Discuss the effect of a volume increase in sales, a price increase in sales, and a cost decrease on the net operating income.

User Account

All Pages