Consider an unregulated market for pesticide. ?When the factories produce pesticide, they also...
Question:
Consider an unregulated market for pesticide.
a.When the factories produce pesticide, they also create waste, which they dump into a lake on the outskirts of the town.
b.The marginal external cost of the dumped waste is equal to the marginal private cost of producing the pesticide, so the marginal social cost of producing the pesticide is double the marginal private cost.
c.Suppose that the government issues marketable pollution permits to enable the factories to produce the efficient amount of pesticide.
d.The government divides permits equally between the townspeople and the factories.
Unregulated Markets:
An unregulated market is just a market of goods or services in which the government has either none or very little influence over price and quantity. Regular market forces dictate price and quantity instead of government action.
Answer and Explanation: 1
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View this answera. This is called a negative externality. This occurs when there is a negative impact on a third party that is created from a productive endeavor....
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Financial Markets & Goods Markets
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Chapter 15 / Lesson 2
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The two most common types of market in the economy are financial markets and goods markets. Learn about the most common types of financial markets and the different types of goods in the goods market.
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