Suppose your city is debating a change in policy from illegal use to legalizing recreational use of marijuana and cannabis products. Your local officials ask you to identify the appropriate aspects required to perform a cost- benefit analysis of this policy change. Using the principles of cost-benefit analysis, your local officials need help in identifying and understanding the benefits to consumers, the benefits to producers, total costs to consumers, total costs to producers, total costs from possible externalities, opportunity costs, incommensurable effects and intangible effects. For simplicity, dynamic time effects, which involve discount rates, are ignored. Following the principles of cost-benefit analysis, are the possible positive health effects (a positive externality) accounted for in cost-benefit analyses? O No. The health effects do not factor into cost-benefit analysis. O Yes. The health effects should be estimated but are a transfer and thus ultimately do not count towards benefits or costs. O Yes. The health effects should be estimated and accounted for as a social opportunity cost or should be disclosed as an incommensurable. O Yes. The health effects should be estimated and accounted for as a benefit or should be disclosed as an incommensurable.
Suppose your city is debating a change in policy from illegal use to legalizing recreational use of marijuana and cannabis products. Your local officials ask you to identify the appropriate aspects required to perform a cost- benefit analysis of this policy change. Using the principles of cost-benefit analysis, your local officials need help in identifying and understanding the benefits to consumers, the benefits to producers, total costs to consumers, total costs to producers, total costs from possible externalities, opportunity costs, incommensurable effects and intangible effects. For simplicity, dynamic time effects, which involve discount rates, are ignored. Following the principles of cost-benefit analysis, are the possible positive health effects (a positive externality) accounted for in cost-benefit analyses? O No. The health effects do not factor into cost-benefit analysis. O Yes. The health effects should be estimated but are a transfer and thus ultimately do not count towards benefits or costs. O Yes. The health effects should be estimated and accounted for as a social opportunity cost or should be disclosed as an incommensurable. O Yes. The health effects should be estimated and accounted for as a benefit or should be disclosed as an incommensurable.
Chapter4: Social Responsibility And Ethics In Marketing
Section: Chapter Questions
Problem 2DYMP
Related questions
Question
Transcribed Image Text:Suppose your city is debating a change in policy from illegal use to legalizing recreational use of marijuana and cannabis products. Your local officials ask you to identify the appropriate aspects required to perform a cost- benefit
analysis of this policy change. Using the principles of cost-benefit analysis, your local officials need help in identifying and understanding the benefits to consumers, the benefits to producers, total costs to consumers, total costs
to producers, total costs from possible externalities, opportunity costs, incommensurable effects and intangible effects. For simplicity, dynamic time effects, which involve discount rates, are ignored.
Following the principles of cost-benefit analysis, are the possible positive health effects (a positive externality) accounted for in cost-benefit analyses?
O No. The health effects do not factor into cost-benefit analysis.
O Yes. The health effects should be estimated but are a transfer and thus ultimately do not count towards benefits or costs.
O Yes. The health effects should be estimated and accounted for as a social opportunity cost or should be disclosed as an incommensurable.
O Yes. The health effects should be estimated and accounted for as a benefit or should be disclosed as an incommensurable.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning