Question: Section B: Calculations and Graphical Analysis Questions. Study these questions. Managing Municipal Solid Waste. 1. Consider the following model of a hypothetical market for MSW

Section B: Calculations and Graphical Analysis Questions. Study these questions. Managing

Section B: Calculations and Graphical Analysis Questions. Study these questions. Managing Municipal Solid Waste. 1. Consider the following model of a hypothetical market for MSW management services: MPB = 18.35-20 MPC 2+Q MEC = 0.250, where Q is the number of trash containers per household per month. A. Quantitatively determine the effect of the resource misallocation due to: i. the presence of the negative externality, and ii. the use of a flat fee pricing system in the presence of a negative externality. B. Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively. Section B: Calculations and Graphical Analysis Questions. Study these questions. Managing Municipal Solid Waste. 1. Consider the following model of a hypothetical market for MSW management services: MPB = 18.35-20 MPC 2+Q MEC = 0.250, where Q is the number of trash containers per household per month. A. Quantitatively determine the effect of the resource misallocation due to: i. the presence of the negative externality, and ii. the use of a flat fee pricing system in the presence of a negative externality. B. Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively

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