What quantity of pesticide use will the market produce

Assignment Help Business Economics

Reference no: EM133401641

Question: Let the aggregate inverse demand curve for household pesticide use he: P=8-U.03Q, where A is tonnes of pesticide used by households per month. The marginal private costs (MPC) of pesticides is given by P = 2 + 0.049 Pesticide use leads to declines in wild bee populations, and hence its use creates a negative externality. Estimates of the marginal damages from household pesticide use are marginal external costs (NLEC) = 0.03

Questions.

a. What quantity of pesticide use will the market produce when no one takes into account the negative externality? Derive the solution algebraically and illustrate graphically.

b. What is the socially ef?cient price and level of pesticide use?

c. What is the net social gain if pesticide use incorporates the externality'?

Reference no: EM133401641

Questions Cloud

What is trisha cost of production as a function of dresses : a labor hour costs $15 and a machine hours costs $35. What is Trisha's cost of production as a function of dresses produced?

Research uses of data visualization in public safety : Research different uses of data visualization in public safety. Select 2 different public safety agencies and find 4 different examples of data visualization.

What can be done to mitigate this problem : Explain Kanthak and Woon's (2015) argument about election aversion. What can be done to mitigate this problem. include quotes

What is the malawi general economic condition : What is the Malawi general economic condition? Why is it qualified to make a Global Fund application? Does it carry significant debt burden and how does this

What quantity of pesticide use will the market produce : What quantity of pesticide use will the market produce when no one takes into account the negative externality? Derive the solution algebraically and illustrate

What are ethical issues that planners need to consider : What are ethical issues that planners need to consider when applying Joint Functions across the competition continuum in an operational area?

Discuss the problems inherent in covert operations : Discuss the problems inherent in covert operations and the use of informants in organized crime law enforcement.

Design implementation testing and acceptance : Design Implementation Testing and Acceptance Maintenance Describe and explain the legal and ethical issues associated with business continuity and disaster

Perform to reach a legal conclusion regarding the right : In other words, demonstrate you understand the five steps in the legal reasoning process as well as the Lopez decision. Your answer should be a paragraph

User Account

All Pages