Polluting electricity power plant

Assignment Help Business Economics
Reference no: EM131166398

"Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but no problem outside that area. The total effect of pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes inland prices and/or wages filly reflect the benefits pf cleaning up pollution? Why or why not?”

Reference no: EM131166398

Questions Cloud

Decided to live in university dormitory-cost for alternative : In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under which he was obligated to pay the room rent for the full college year. What are the three alternatives available to Jay? Evaluate the cost for each o..
Money supply increases during liquidity trap : How come inflation does NOT increase if the money supply increases during a liquidity trap? My guess is that if people hold more cash, they would spend more. Given that during a liquidity trap the economy is maxed out and cannot increase output, the ..
Compute the price elasticity of demand for eggplants : Use the following information to answer the questions below. A local supermarket had been charging $2.00 a pound for eggplants and selling 200 pounds a week. Compute the price elasticity of demand for eggplants. When the price rises from $2.00 to $2...
Book value for each year using the deprecation methods : An asset has an initial cost of $25,000, a useful life of 6 years and a salvage values of $1,000. Calculate the annual depreciation and book value for each year using the following deprecation methods:
Polluting electricity power plant : "Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but ..
Cause the supply of cat food to increase : Which of the following would cause the supply of cat food to increase?
The price of steel and aluminum increase : Which of the following scenarios will most likely shift the supply of cars to the left (decrease in supply)? -The price of cars decreases. -The price of automotive paint decreases. -The price of steel and aluminum increase. -Automobile workers become..
Market demand for product with no change in market supply : If there were a decrease in the market demand for a product with no change in market supply, the equilibrium price would:
Describe an example of an information asymmetry : Find and describe an example of an information asymmetry that could give rise to either adverse selection or moral hazard. How is the information asymmetry corrected in your example (if it is)? Are there other methods of correcting the information as..

Reviews

Write a Review

Business Economics Questions & Answers

  Security or purchasing a different security

Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $ 3,000 today but pays off $3,300 with security in one year. Explain in words, how an investor’s choice of which security to purchas..

  Represented by the payoff function

A decision-maker's preferences over the set A=(a,b,c) are represented by the payoff function u for which u(a)=0, u(b)=1, and u(c)=4/ Are they also represented by the function u for which u(a)= -1, u(b)=0, and u(c)=2? How about the function w for whic..

  Effect of the error on the income statement

State the effect of the error on the December 31, 2010, balance sheet of Boss Motorcycle Shop. State the effect of the error on the income statement of Boss Motorcycle Shop for the year ended December 31, 2010.

  What is the optimal consumption bundle

What is the optimal consumption bundle (a*,b*)? What can you say about this utility function?

  Optimal number of the two different media player models

The sales manager for ABC Electronics wants to maximize his profit on the sale of two portable media player models, JVD-2000 and MDP-72. The wholesale costs of these models are $310 and $100 per unit respectively. The retail sales prices are $420 and..

  Some goods generate spillover benefits from production

Some goods generate spillover benefits from production, but it is:

  How microsoft responds to threat of potential competitors

Recall the Application about how Microsoft responds to the threat of potential competitors to answer the following question(s). Recall the Application. In an effort to deter entry into its key markets, Microsoft engages in:

  The citizens of springfield love donuts

The citizens of Springfield love donuts. Due to health concerns, the city has decided to make citizens responsible for paying a per donut tax of 50 cents. a) On the graph, please shift the appropriate curve to illustrate the effect of the tax.

  Price in excess of time

If the demand for gold residue high explain what would happen to the price in excess of time.

  Discuss the effects of the change on the value of current

Discuss the effects of the change on the value of the currency and the country's balance of payments, using historical and current circumstances.

  Short-run economic profits are greater than zero for firms

If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:

  Equal pay for work of equal value

“Equal pay for work of equal value” is a commonly held goal, but “equal value” is hard to define. What would be the consequences of legislation that enforces equal pay for what turns out to be work of unequal value?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd