1a) Water filtration removes contaminants that increase the risk of plant diseases from a farmer's water sources. As a result, there is a decreased risk of consumers suffering illnesses from consuming crops grown with filtered water. Due to this, economists might suggest that the use of water filtration systems in agriculture has an associated ________ externality? 1b) Draw the private cost, private benefit, social cost, and social benefit curves in the market for water filtration systems. If any of the curves are the same, label the curve as both. 1c) Is there market failure if the market runs freely? If so, is the socially optimal quantity of farmers using water filtration systems higher or lower than the market outcome?
1a) Water filtration removes contaminants that increase the risk of plant diseases from a farmer's water sources. As a result, there is a decreased risk of consumers suffering illnesses from consuming crops grown with filtered water. Due to this, economists might suggest that the use of water filtration systems in agriculture has an associated ________ externality?
1b) Draw the private cost, private benefit,
1c) Is there market failure if the market runs freely? If so, is the socially optimal quantity of farmers using water filtration systems higher or lower than the market outcome?
1d) Provide a policy suggestion that would help to correct any market failures that arise due to this externality. Explain why this would be effective.
2a) Livestock and poultry farming are some of the largest contributors of ammonia emissions. Ammonia has been shown to interact with other pollutants to form ammonium salts that negatively impact air quality and adversely impact human breathing. As a result, economists might suggest that animal products have an associated _________ externality?
2b) Draw the private cost, private benefit, social cost, and social benefit curves in the market for the animal products. If any of the curves are the same, label the curve as both.
2c) Is there market failure if the market runs freely? If so, is the socially optimal quantity of animal products higher or lower than the market outcome?
2d) Provide a policy suggestion that would help to correct any market failures that arise due to this externality. Explain why this would be effective.
Can someone please help me and explain this to me please? Thank you so much in advance!!!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
