A piece of state legislation proposes banning smoking in nearly all public facilities and private businesses. The major argument for the bill is that it “is needed to protect nonsmokers from the health hazards of cigarettes.” Prepare an evaluation of the economic case for this legislation. (Assume that smoking adversely affects the health of nearby nonsmokers.)
Answer to relevant QuestionsBy any absolute or relative measure, mail order and online shopping has increased dramatically over the past few decaders. Explain why this might be the case on account of the growth of two- wage- earner families. Suppose that the demand curve for corn is downward-sloping but that the supply curve is perfectly price inelastic at a quantity of Q* once the corn is harvested. Furthermore, assume that the equilibrium price is $ 5 per ...A few years ago, the bidding for a human kidney offered on the Internet auction site eBay hit $ 5.7 million before the company put a stop to it citing a federal law that makes it illegal to sell one’s own organs. Using a ...In an otherwise competitive economy there is an externality in the form of pollution. Show what the private market equilibrium implies in terms of where we are on (or inside of) the welfare frontier.Explain why efficiency in production is not realized if both refineries in Figure are limited to emitting 100 pollution units each.
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