Economists argue that there is an efficient amount of pollution abatement. Explain why the efficient amount of abatement is unlikely to be either zero or 100 percent. List all the information that would be required to determine the efficient amount of pollution abatement. Why is it difficult in practice to determine the efficient amount of pollution abatement?
Answer to relevant QuestionsSuppose the marginal cost of a pure public good increases as more is purchased by a community. Prove that the Lindahl equilibrium will result in a budget surplus at the efficient annual output of the pure public good. The example of logrolling used in the text assumes that the transactions costs of vote trading are zero. Suppose instead that voters A and C have to incur expenditures equal to $60 per week to reach agreement on the ...Suppose low-income people are given vouchers worth $200 per month that they can use only to pay rent on housing. Use indifference curve analysis to show how the person could be made as well off with a $200 cash transfer. ...The current tax rate paid by employees in a company on their income is 30 percent. Currently, the employer provides workers with a health insurance policy that is worth $3,000 per year. a. Assuming that the company has 1,000 ...The annual demand for liquor in a certain state is given by the following equation: QD = 500,000 – 20,000P Where P is the price per gallon and QD is quantity of gallons demanded per year. The supply of liquor is given by ...
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