Explain why the socially optimal amount of the product

Reference no: EM133261225

Tests found high levels of toxic ethylene oxide gas in nearby neighborhoods of a commercial sterilization facility in a locality near Atlanta. This is an example of negative externality, in which the private production costs do not include the full costs that its products/by-products impose on the society.

Question 1: Please use the demand and supply graph to explain why the socially optimal amount of the product produced by this firm is less than individual optimal amount of this products.

Question 2: What policies can be used to correct the negative externality in this case?

Reference no: EM133261225

Questions Cloud

Explain how campbells account of creativity supports knight : ECONOMICS 123 San Francisco State University Explain how Campbell's account of creativity supports Knight's distinction between risk and uncertainty.

Discuss backing evidence to make a learning organisation : Identify and discuss 3 top key characteristics based on your analysis with backing evidence to make a Learning Organisation at both The Star and The Crown.

Identify the factors that are important for guard-ex : Identify the factors that are important for Guard-Ex to consider in evaluating the appropriate Systems Testing and Implementation plan to meet their needs

Explain the major limitations international product cycle : ECONOMICS 123 San Francisco State University Discuss on the trends in Global Sourcing Strategy and Explain the major limitations international product cycle

Explain why the socially optimal amount of the product : ECON 5931 Harvard University explain why the socially optimal amount of the product produced by this firm is less than individual optimal amount of this product

How can indeed increase their customers : ECON 102 Pennsylvania State University How can indeed increase their customers? What are the significant strategies for indeed to increase its customer base?

Would you want to do so : ECON 136 University of California, Berkeley currently play in and enter a league that assured your team would never lose again. Would you want to do so?

What are seven tools of quality control : What are seven tools of quality control? Can we use these tools to a health care system (hospital, clinic, lab,etc.)s?

How much would it produce : ECO 534 St. Thomas University The firm's profit maximizing output level is 00 units, the profit per unit is $9 and total profit is $900 however,

User Account

All Pages