class 13-2 post

class 13-2 post - Class 13 Externalities, Open Access, and...

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Class 13 xternalities Open Access and Public Externalities, Open Access, and Public Goods
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Last Class ntry and Exit ± Entry and Exit ± Welfare Measures ± Competition maximizes Welfare pplication Ta es and Q otas ± Application: Taxes and Quotas
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Outline xternalities ± Externalities ± Public Goods ± General Equilibrium: Preview
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Externalities: Pollution from Paper Production Price of paper elfare from producing Q tons 450 $ per ton Loss from too much polution ( ) () 0 : Q DS Welfare from producing Q tons WQ p q MC q d q =− MC s =MC p + MC g C p e s MC e c 240 282 198 MC g 30 48 Tons of 225 Q s =84 Q c =105 0 Q , Tons of paper per day
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Externalities: Pollution from Paper Production Price of paper elfare from producing Q tons 450 $ per ton ( ) () 0 : Q DS Welfare from producing Q tons WQ p q MC q d q =− MC s =MC p + MC g C p Solutions: ± Emission Standards MC p + f e s MC e c 240 282 ± Emission Fees = MC s Q 198 MC g f MC ( Q s ) 30 48 Tons of 225 Q s =84 Q c =105 0 Q , Tons of paper per day
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Outline xternalities ± Externalities ± Public Goods ± General Equilibrium: Preview
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This note was uploaded on 12/10/2011 for the course ECON 401 taught by Professor Burbidge,john during the Winter '08 term at Waterloo.

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class 13-2 post - Class 13 Externalities, Open Access, and...

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