Individual Project 4 - eliminate it. It would be best to...

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Pure, Per Se and Natural Monopolies 1 Pure, Per Se and Natural Monopolies Marquetta Nixon Microeconomic Professor Grace O. Onodipe Date: Sept. 17, 2011 Due Date: Sept. 18, 2011
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Pure, Per Se and Natural Monopolies 2 The two policies I could use is (1) cap carbon emissions through the use of a carbon tax. (2) Allow emitters to “trade” pollution permits or allowances, among themselves. I think they would work because you can make a lot of profit off of them both. You can make the price any price you want them to be. Cost and Benefit analysis can be used to justify eliminating pollution. There are two levels of analysis. The society must decide on the optimal level of pollution. For example, if a factory were creating $100,000 per year in damages due to pollution it would not make sense to pay $500,000 to
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Unformatted text preview: eliminate it. It would be best to pay the damages of $100, 000 and continue to pollute. Second, if pollution should be eliminated, the society must decide how to eliminate the pollution: regulation (uniform abatement policy), tax on pollution, or selling permits to pollute. To understand the analysis, it is best to consider marginal benefit and the marginal cost of any new program or activity. The way I would decide which one is better is to see the two works. Then I would compare my notes that I took while does the little experiment Pure, Per Se and Natural Monopolies 3 and then I would find out which one is the better. I would continue with the one that is the better one. Pure, Per Se and Natural Monopolies 4 Reference Page www.google.com...
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This note was uploaded on 09/24/2011 for the course BUSN 105 taught by Professor Markw.preising during the Spring '10 term at American InterContinental University.

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Individual Project 4 - eliminate it. It would be best to...

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