Do the firms have an incentive to reduce their pollution

Assignment Help Macroeconomics

Reference no: EM13180588

a. Consider a competitive market supple and demand model. If there are no externalities, explain why economists describe the competitive equilibrium an efficient?

b. Suppose instead that all of the firms in this market vent an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this new outcome efficient? explain with a diagram

c. Do these firms have an incentive to reduce their pollution? Explain with diagram.

d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "solve" the problem of pollution.

Reference no: EM13180588

Questions Cloud

How many grippers must roseville medical sell : How many Grippers must Roseville Medical sell in order to breakeven and how many Grippers must Roseville Medical sell in order to earn a target profit of $500,000?

Which is concerning the marginal-physical-product curve : Which of the following statements concerning the marginal-physical-product curve above is true? It can be determined from the marginal-physical-product curve shown above that A)marginal physical product reaches a minimum with the first worker.

Find an equation for the parabola : Highway engineers design a parabolic curve for an entrance ramp from a straight street to an interstate highway . The vertex of the curve passes through (0, 0) and the parabola passes through (1000, + 800). Find an equation for the parabola.

Which statement is correct : Which statement is correct?

Do the firms have an incentive to reduce their pollution : Do these firms have an incentive to reduce their pollution? Explain with diagram. d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "so..

Find the maximum height of the object : Suppose that an object is projected in such a way that its height above the ground in feet after t seconds is given by s(t) = -16t2 +48t + 46. Find the maximum height of the object.

Evaluate the integral by completing the square : Evaluate the integral by completing the square and using the following formula. (Remember to use ln |u| where appropriate.)

Define aggregate production function with typical shape : Draw an aggregate production function with typical shape and label it "F". Make sure to label the axis of the graph. Now, add two more production functions based on the following scenarios.Efficient institutions are adopted in a country. Label this..

Find the volume of the resulting solid : The region under the curve y = 3 tan2x from 0 to π/4 is rotated about the x-axis. Find the volume of the resulting solid. (in fraction form)

User Account

All Pages