1. Show how firms choose which technology to use in production using the example of a...

1. Show how firms choose which technology to use in production using the example of a fall in the price of energy relative to the price of labour.

2. Demonstrate how external effects caused by pollution from production by firms can lead to market failure in a competitive market. Suggest a possible policy response.

[ I just need the basic theory , don't need to answer it more briefly according to the marks ]

Expert Solution

Q.1

Rahul Sunny answered 9 months ago

Show how firms choose which technology to use in production using the example of a fall...

Show how firms choose which technology to use in production using the example of a fall in the price of energy relative to the price of labour

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