Question E4/Stretch Problem If we apply the idea of nitrate contamination (the context of the Unit 3 model) to the negative externality context, describe and explain how the use of a tax to move the market to a social equilibrium compares to the idea of getting to the optimal level of abatement (or the optimal level of contamination) through a government's policy choice. That is, compare and contrast the objectives of the government as well as the mechanisms involved in the two different approaches of the two different models. NOTE: This problem is designed to see how you look at the problem and less focused on getting everything right. If you are short of time, you may want
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- Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…"Since the occurrence of COVID-19 health crisis in Gaza in early 2020, severalexternalities existed during the partial, and complete economic lockdown."Answer the following questions: b. Give an example on an externality (domestic or international) that occurredduring COVID-19 economic crisis.
- . Some dissenting scientists at Environment Canada disagree with the estimate of $1.50 for theenvironmental externality. They believe that the incidence of the externality is not constant acrossdifferent levels of production; instead the size of the externality is proportional to the level of output.That is, the larger is the output, the larger is the externality. Their research suggests that the truesocial cost of cereal production diverges from private costs at every level of production by an amountequal to ten percent of production (note: ten percent, not ten percentage points).The government would like to know the economic effects of implementing a tax to internalise theexternality in this case. Draw the diagram for this market and policy. Solve for all relevant Ps and Qs.Calculate producer surplusConsider two ways to protect your car from theft.The Club (a steering wheel lock) makes it difficult fora car thief to take your car. Lojack (a tracking system)makes it easier for the police to catch the car thiefwho has stolen it. Which of these methods confersa negative externality on other car owners? Whichconfers a positive externality? Do you think there areany policy implications of your analysis?2. Refer to Graph 10-1. Assume the externality is not internalised. What is the loss to society from the last unit of the good produced by the market? A. P3-P2 B. P2-P1 C. P3-P1 D. ZeroGraph 10-1 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Clearly state the application of the benchmarking concept on social policy implementationSuppose that there are only two polluters in a society. If left uncontrolled, polluter 1 emits 85 units of a pollutant, while polluter 2 emits 15 units. The polluters' marginal abatement costs are MAC1= 0.25al and MAC2=2a2. Policy makers have established that 28 units is the level to which emissions of the pollutant should be reduced. Determne the abatement responsibilities that should be assigned to each polluter in order to minimize total compliance cost. Illustrate with graphs. (thats all info question gave us)One way that externalities can be eliminated is to Question 53Select one: a. increase competition b. regulate production or consumption c. increase transaction costs d. ensure perfect market information e. relax enforcement of property rights
- 1. How did Covid-19 affect businesses and the overall economy? 2. Governments and pharmaceutical companies rushed quickly ahead to develop a vaccine. Vaccinations and immunizations are examples of positive externalities. A positive externality is when an activity creates a benefit for those who are not involved in the transaction, a third party. Let’s examine the vaccination of Covid-19 as a positive externality. Question: Why is the Covid-19 vaccination considered a positive externality? 3. Market supply curve S and private demand curve Dp represent the market for vaccinations. Equilibrium is at point e, and the number of people getting the vaccination is Qe. Society would benefit, however, if more people would get the vaccination. Demand curve DS represents the marginal social benefit (MSB), which includes the private demand for vaccinations plus the external benefits that flow from it. Socially optimal enrollment would be Q1 (point f). Society would benefit the most by…For each of the following statements indicate if there is/could be an externality problem. Explain why or why not. lf there is, what type is it (positive, negative or both)? Determine if the Coase's theorem will be a perfect solution to the problem. Explain why or why not a. Carbon emission from vehicles. b. Your hostel neighbor throwing an awesome, but loud party. C. Completing your university degree. d. A mobile phone rings loudly in the class.explain and illustrate with hypothetical examples on HOW organizations can exercise their social responsibility during the Coronavirus pandemic, supported by the Pyramid of CSR of economic responsibility