7. Correcting for negative externalities - Taxes versus tradablepermits
Paper factories emit chemicals as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a negative
externality of paper production. Suppose the U. S. government wants to correct this market failure by getting firms to internalize the cost of pollutic
To do this, the government can charge firms for pollution rights (the right to emit a given quantity of chemicals). The following graph shows the
daily demand for pollution rights.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
?
Daily Demand for Pollution Rights
90
9
81
72
Price
(Dollars per ton)
Quantity
Demanded
(Millions of tons)
450
63
54
PRICE (Dollars per ton)
45
36
27
Demand
18
9
0
0
50 100 150 200 250 300 350 400 450 500
QUANTITY (Millions of tons)
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 19:30, jachecj3269
The framers of the us constitution created a system of government that established branches of government set forth the powers of such a branches and placed limits on those powers what are the benefits of such a system? are there any problems associated with such a system?
Answers: 3
Business, 21.06.2019 21:10, BABA3724
Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?
Answers: 1
Business, 22.06.2019 10:40, charlesrogers38
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
Business, 22.06.2019 11:40, Josias13
In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?
Answers: 2
Do you know the correct answer?
7. Correcting for negative externalities - Taxes versus tradablepermits
Paper factories emit chemic...
Questions in other subjects:
Mathematics, 08.12.2019 11:31
Chemistry, 08.12.2019 11:31
Biology, 08.12.2019 11:31
