1
a) Show that when all consumers and producers are price takers, a competitive equilibrium is always Pareto optimal. (9 marks)
b) Despite economists’ support of a market approach to environmental policy, the command- and-control approach continues to dominate the policy of most nations. Explain why this is the case. In your response, cite and then comment on some of the common criticisms of market-based initiatives. ( 6 mark )
c) Explain the following using appropriate diagram. ( 20 mark )
i. Pigouvian Tax
ii. Pigouvian Subsidies
iii. Deposit/refund systems
iv. Pollution permit trading systems
1 a) Show that when all consumers and producers are price takers, a competitive equilibrium is...
"Despite economists’ support of a market approach to environmental policy, the command- and-control approach continues to dominate the policy of most nations". Explain why this is the case. What are some of the common criticisms of market-based initiatives?
MSB=MPB = 50 - 0.4Q MPC = 2+0.2Q MSC = 2+0.4Q determine competitive equilibrium. Determine the allocative efficient equilibrium. what amount of a Pigouvian tax would result in the efficient equilibrium? what is the price producers would recieve and what is the price consumers would pay at this tax level? 3. A chemical manufacturing plant is releasing nitrogen into the air, and these emissions are associated with health and ecological damages. Economists have estimated the following marginal costs and benefits...
can someone please help me with an introduction paragraph and a summary of the whole article. us. Trump Didn't Kill the Global Trade System. He Split It in Two. Allies find relations modestly tweaked despite the president's rhetoric, while relations with China are entering a deep freeze By Greg Ip Dec. 26, 2018 1136 am. ET When Donald Trump entered the White House on a platform of defiant nationalism nearly two years ago, many feared he would dismantle the global...