Regulations have an efficiency-enhancing role in the presence of exter- nalities. Discuss, with examples of regulatory approaches including the Coasian approach.
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Regulations have an efficiency-enhancing role in the presence of exter-
nalities. Discuss, with examples of regulatory approaches including the
Coasian approach.
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- d/qui//attempt.php?attempt%3D19719928&lcmid%3D1786124 Clackamas Students Faculty English (United States) (en_us) Oh. There are positive externalities associated with smoking. 10 long-run. Smoking will decrease more in the short-run than in the O j. Smoking will decrease only slightly in the short-run. The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is $1300 per month, and the government proposes a rent ceiling of $1000 per month. of Which of the following statements are false? (Select all that apply.) estion There will be a shortage of housing. Ob. The rent-control law will have no effect on the market. The law would make rental units more expensive. d. There will be an excess supply of housing. The law may result in an increase in the cost of non-rental housing. We would except to see an increase in the supply of non- rental housing units. g. The government…The market inverse supply curve for amoxicillin, an antibiotic with lots of generics, isrepresented by the equation P = 3 + 0.0006QS. The market demand curve is represented byQD = 187,500 − 625P.It is well known that antibiotic use generates negative externalities. How might thegovernment restrict the use of antibiotics? Show this on a demand-supply graph. Thendiscuss a potential unintended consequence of the government’s intervention.Externalization is tacit to explicit knowledge, through which the knowledge is made explicit and codified in some persistent form. True False
- The National Institute of Health (NIH) provides grants funded by the U.S. government to researchers conducting research in the health science. The rationale for providing government funds to health research is that O it helps promote competition in the field O it helps consumers receive better information O it provides negative externalities if not properly supervised by the government the research provides positive externalities and would be under-produced without government subsidiesWhy are taxes, one traditional remedy for negative externalities, less than ideal for smoking cessation in the United States? Nicotine is addictive/demand is inelastic, and smokers are mostly poor, so in effect cigarette taxes reduce the quality of life of people we’re trying to help without substantially reducing smoking Demand is inelastic, and smokers are mostly rich, so they don’t reduce smoking as a result of taxes Demand is elastic, and smokers are mostly old, so taxes reduce smoking but cause increased anxiety among the elderly Demand is elastic, and smokers are mostly young, so they quit smoking but are then more likely to experiment with illegal drugsWhy the presence of the product variety externality does imply that there is too little entry of new firms in the market?
- Dollars P₂ P 0 Q3QQ₂ MC Multiple Choice ATC Quantity MR Refer to the diagram for a pure monopolist. If a regulatory commission sets the price to achieve the socially optimal allocation of resources, it will have to tax the monopolist P3P per unit to prevent the monopolist from realizing an economic profit. subsidize the monopolist P1P4 per unit to allow the monopolist to break even. tax the monopolist P₁P2 per unit to prevent the monopolist from realizing an economic profit. subsidize the monopolist or the monopolist will go bankrupt in the long run.The side effect of an action that increases the well-being of others is called 8888 ah augmentation. an elasticity. a passive benefit. a positive externality.Explain the economic case for social regulation that is based upon externalities. What is the meaning attached to market failure in this context?
- A number of coal burning steam locomotives pass by several largely populated towns each day spewing sulfur dioxide. Each coal burning steam locomotive is owned by a different company. a. Explain how the Coase theorem could work to achieve the optimal level of sulfur dioxide emissions. Explain how the achievement of the optimal level of sulfur can be hindered in reality for this particular problem. b. Assume that the true marginal abatement cost curve for all firms is not known to a regulator. If the marginal damages from sulfur dioxide is fairly constant at all levels of sulfur dioxide levels, what is the better type of policy to implement, a quota or a tax on sulfur dioxide emissions? Give a brief explanation of why you have chosen that particular policy. Use a graph to support your explanation.Efficiency in the presence of externalitiesT/F There are alot of firms (seller) in a monopoly market. Justify in detail.
