Reference no: EM131239266
Consider a river, with no associated property rights. A downstream resort uses the river for fishing and swimming, for guests. An upstream feedlot uses the river for waste disposal. The two parties with conflicting interests are unable to negotiate with each other, due to lack of clearly assigned property rights, and the government refuses to regulate in any way. The marginal benefit of abatement, to the downstream resort, is given by: MB(A) = 100 – (A/2) Meanwhile, the marginal cost of abatement to the upstream feedlot is given by: MC(A) = (A/4)
a) What is the market determined equilibrium level of abatement?
b) At the equilibrium level of abatement, what are the total damage costs?
c) At the socially optimal level of abatement i) what is the quantity of abatement? ii) what are the total benefits of abatement? iii) what are the total costs of abatement? iv) what is the increase in social surplus, compared to the equilibrium in (a)?
2. What would the negotiated level of abatement be, according to Coase
a) if the rights to clean water were clearly assigned to the resort owner?
b) if the rights to pollute were clearly allocated to the feedlot?
3. What is the minimum it is going to cost a) the feedlot, if rights to clean water are allocated to the resort? b) the resort, if rights to pollute are are allocated to the feedlot?
|
Earthquake destroys part of nation capital stock
: Suppose an earthquake destroys part of a nation’s capital stock, but does not kill off any people. Use the Solow model without technological change to describe the effect of this event on the country’s total output and its per capita output over time..
|
|
What are your personal hot buttons
: What are your personal hot buttons? How do you feel when someone triggers one of your hot buttons? Why? Do your encounters with hot buttons make it difficult for you to communicate effectively
|
|
Show that e and s \ f are independent
: Suppose that E and F are independent events in a finite probability space (S, P).
|
|
How to plot some indifference curves for utility function
: In this exercise, I will show you how to plot some indifference curves for the utility function u(x, y) = xy. Carefully read and follow these steps. For each of the values x = 1, 2, 3, 4, 5, find the corresponding value of y such that u(x, y) = 5. Pl..
|
|
What is the market determined equilibrium level of abatement
: Consider a river, with no associated property rights. A downstream resort uses the river for fishing and swimming, for guests. An upstream feedlot uses the river for waste disposal. What is the market determined equilibrium level of abatement? What w..
|
|
List all the events in this space that are independent of e
: Show that each event with probability 0 or 1 is independent of every event in its space ? Suppose that S = {a,b,c,d}, all outcomes equally likely, and E = {a,b}. List all the events in this space that are independent of E.
|
|
What are your differential diagnoses
: What are your differential diagnoses? Include the pathological process involved with your diagnosis. What tests would you order to confirm your diagnosis? What treatments or interventions would be the first line of protocol for your diagnosis?
|
|
Which diets is based on the glycemic index
: Which of the following diets is based on the glycemic index? Which of the following items should be avoided or limited during pregnancy? At what age should babies begin solid food?
|
|
Why does she have bacteria and white blood cell casts
: What are the differences when comparing prerenal acute renal failure, intrarenal acute renal failure, and postrenal acute renal failure? Give examples of each and pathological processes related to each disease process.
|