Question: a. To help fight the problem of nonpoint source pollution associated with agricultural runoff, your state is contemplating charging an annual fee of $500 to

a. To help fight the problem of nonpoint source pollution associated with agricultural runoff, your state is contemplating charging an annual fee of $500 to every seller of pesticides. If this fee is to achieve an efficient solution, state specifically according to externality theory

(a) What the $500 fee must represent.

(b) In which market.

b. Illustrate graphically, labeling where and how the fee is imposed.

Step by Step Solution

★★★★★

3.52 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a a For efficiency to be achieved the 500 fee must be equivalent to the marginal external cos... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Questions!

At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt securities (all of which were acquired at par value): During 2019, the following...

Working as part of an EPA team, your assignment is to give a clear, objective presentation of a market-based approach to reduce nonpoint source pollution. Include in your discussion the theoretical...

Other groups besides African Americans had to fight for Civil Rights. Choose one of the following groups: Mexican Americans, Puerto Ricans, Japanese Americans, or Native Americans. Outline their...

Economic ideas and equilibrium analysis have many fascinating applications in biology. Popular discussions of natural selection and biological fitness often take it for granted that animal traits are...

Research Paper: Topic: Why did the traditional financial risk approaches, methods, and tools fail in the financial market meltdown of 2008 - 2009? Discuss questions DQ #1: How has fair value...

PROGRAMME HANDBOOK: JANUARY 2016 INTAKE ASSIGNMENT 2: HUMAN RESOURCES DEVELOPMENT Read the case study below and answer the questions that follow. National HRD in Finland, Russia, and South Africa...

Utilizing the text book,pages 264-278. In paragraph (1) Identify one country that has a current and excessive Trade Surplus. Identify the products that are responsible for the Trade Surplus, you may...

Utilizing the text book,pages 264-278 In paragraph (1) Identify one country that has a current and excessive Trade Surplus. Identify the products that are responsible for the Trade Surplus, you may...

1. Summarize the case. 2. Explain relevant theories, concepts, and models from the textbook. 3. Identify the relevant stakeholders and explain their position/perspective. 4. Explain what the...

Requirements 1. The report is at least five pages long, and please follow APA formatting. 2. Include your name, section, and student ID on the title page. 3. In the report, you should include the...

Wong sees the advertisement shown below on his College website offering scholarships to exceptional graduating students. He decides to apply and needs to write an application to the College Financial...

Entity A purchased a property (Land and Building) for $5,000,000 on 1 July 2017. Entity A paid 60% by a cheque on 1 July 2017 and the balance was settled on 1 August 2017 through a bank transfer. The...

A taxpayer is an occasional gambler and won \ ( \ $ 1 5 , 0 0 0 \ ) at the casino for tax year 2 0 2 4 . Over the course of the tax year, the taxpayer has a record of \ ( \ $ 1 8 , 7 6 3 \ ) in...

If an f = 135-mm telephoto lens is designed to cover object distances from 1.2 m to 00, over what distance must the lens move relative to the plane of the film?

Reading glasses of what power are needed for a person whose near point is 115 cm, so that he can read a computer screen at 55 cm? Assume a lens- eye distance of 1.8 cm.

One lens of a nearsighted persons eyeglasses has a focal length of -22.0 cm, and the lens is 81.8 cm from the eye. If the person switches to contact lenses that are placed directly on the eye, what...

Monochromatic light falls on two very narrow slits 0.048mm apart. Successive fringes on a screen 5.00m away are 6.5cm apart near the center of the pattern. Determine the wavelength and frequency of...

A parallel beam of light from a He-Ne laser, with a wavelength 656nm, falls on two very narrow slits 0.060mm apart. How far apart are the fringes in the center of the pattern on a screen 3.6m away?

22.9 Video Question. Go to this texts Web site at www. cengage.com/blaw/blt and select Chapter 22. Click on Video Questions and view the video titled Negotiable Instruments. Then answer the following...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Suppose that there are only three types of fruit sold in the United States. Annual sales are 1 million tons of blueberries, 5 million tons of strawberries, and 10 million tons of bananas. Suppose...

Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000...

how to find the probability that 2-5 players ejected by hook during a given week x. P(x) 0 0.10 1 0.18 2 0.23 3 0.25 4 0.14 5 0.07 6 0.03 mean = 0.14285714 sd = 0.081998839

Read the question and answer the questions that follow: Determine the weighted average cost of capital using ( 1 ) book value weights; and ( 2 ) market value weights based on the following...

3. You are assessing the average performance of two mutual fund managers with the Fama-French 3-factor model. The fund managers and the Fama-French factors had the following performance over this...