AEM_250_homework_3_externalities_F2008 - AEM 250...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM 250: Environmental and Resource Economics Homework 3 – Market Failure (Externalities) Distributed: Oct. 1, 2008, due in AEM 250 Red Box outside of Warren 104 by 9:30 A.M. on Oct. 10, 2008 (No late assignments will be accepted unless prior permission from Prof. Poe has been obtained. If you are having problems with some of the answers, you are advised to peruse the relevant gobbets on the course web site) 10 Points. Each question weighted equally. All graphs should be clearly labeled and all other work legible. If we are unable to interpret your work, you will receive a lower score. 1. (Adapted from Harris, Question 1, p. 61) Consider the following supply and demand schedule for steel: Assume that the above supply and demand curves are linear between points (and do not extend beyond the first (positive, positive) quadrant). Pollution from steel production is estimated to create an external cost of $60 per ton. There are no taxes in these initial conditions.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/06/2008 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell.

Page1 / 2

AEM_250_homework_3_externalities_F2008 - AEM 250...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online