Suppose that gunk is a pollution by-product of

Reference no: EM13372371

Suppose that "gunk" is a pollution by-product of manufacturing computer processors. Environmental activists propose regulation to limit emissions of gunk. The proposed regulation leads to pollution-control costs that are heavily concentrated upon the small number of firms that produce computer processors. Control costs under the proposal are estimated to be approximately $ 1(X) million per manufacturing facility per year. The benefits of reduced gunk emissions are thinly spread out among the 12 million or so people who live in the region where computer processors are manufactured. It is estimated that each of the 12 million people living near a facility will typically incur around $50 per year in external costs associated with uncontrolled gunk emissions, mostly from occasional mild coldlikc symptoms, but gunk is not known to be linked to any deaths. debilitating injuries. or birth defects.

a. Using Oye and Maxwell's terminology. is this an example of a "Stiglerian" or an "01- sonian" regulatory situation? Carefully explain your reasoning.

Reference no: EM13372371

Questions Cloud

The acme company has a monopoly in making widgets which : the acme company has a monopoly in making widgets which they sell for 100 each at a quantity of 1 million units per

Choose a product or a product line that comes from a small : choose a product or a product line that comes from a small to medium sized company that may or may not already be

Question 1 nbspa newly-discovered oil-bearing geologic : question 1. nbspa newly-discovered oil-bearing geologic formation is estimated to contain 500000 barrels bbl of crude

Discuss and explain japans slow economic growth over the : discuss and explain japans slow economic growth over the past few decades and the projection that this will continue.

Suppose that gunk is a pollution by-product of : suppose that gunk is a pollution by-product of manufacturing computer processors. environmental activists propose

1 stag hunt two guys go hunting for food and each can : 1. stag hunt. two guys go hunting for food and each can choose to hunt stag or hunt hares. only if both players hunt

1 suppose the market for grass seed can be expressed : 1 suppose the market for grass seed can be expressed asdemand qd 100 - 2psupply qs 3pif government imposes a 5

A the above figure shows four different markets with : a the above figure shows four different markets with changes in either the supply curve or the demand curve. which

1 2 2 5 isa a normative statementb a moral judgmentc : 1 2 2 5 isa a normative statement.b a moral judgment.c correct given common assumptions.d a positive statement.2 an

User Account

All Pages