What is the difference between a market-based solution and a command and control solution, with respect...

What is the difference between a market-based solution and a command and control solution, with respect to externalities?

Think about how private individuals can solve externalities through Coasian bargaining. Why do Coasian solutions fail in the real world?

Jenna loves the show Downton Abbey and watches in on PBS every night, but never donates to support the public television station during fundraising drives. What would economists call Jenna?

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Lawmakers are presented with two wide catagory of changing production and consumption tendencies in society. The traditional approach is known as command and control used to set specific limit for emissions.The command and control approach stipulates specific standard that made by polluters.specified allowable quantities of pollution and the control technologies to be applied are classified under command-and-control regulations (Benney, 2015). A good example is the environmental laws passed by the United States specifying the amount of pollution that could be emitted by a smokestack and the accompanying penalty if it was exceeded. On the other hand, market-oriented incentives rely on market forces to control pollution.

Large number of parties and ‘global’ externality.Ex/ Air pollution from power plants.Transactions costs are high because there are millions of people who may be harmed by pollution.Incentive for people who benefit from the reduced pollution to free-ride (non-excludability).

Rahul Sunny answered 1 year ago

Describe the difference between a command, a market, and a mixed economy.

Command-and-control policies and market-based policies are policies used to deal with externalities.

1. Command-and-control policies and market-based policies are policies used to deal with externalities. Provide a specific example of each policy in the economy today and explain how they work. 2. “Any public good is worth producing because it benefits so many people.” Do you agree with this statement? If not, how would you decide which public good should be produced and which should not? 3. Explain why there is excess environmental pollution in our society?

What is the difference in costs between command and contorl and tradable allowances?

Compare command and control to market based approaches, providing a couple examples of each. Why do...

Compare command and control to market based approaches, providing a couple examples of each. Why do economists tend to prefer market based approaches? Why have, historically, regulators tended to employ command and control approaches? Give an example of a situation where one approach would be preferable to another, and justify your choice.

Why do economists generally prefer “market-based” policies to “command-and-control” (regulatory) policies to deal with “market failures”?

Which of the following is a command-and-control based pollution control policy? a subsidy provided by the...

Which of the following is a command-and-control based pollution control policy? a subsidy provided by the city for keeping land undeveloped. a state emissions tax on coal power plants. a federal government requirement that all vehicle fleets average a set level of emissions by 2030. a county selling permits for toxic waste dumping. A natural monopoly firm will produce where the _____ curve intersects the downward-sloping part of the _____ curve. marginal revenue; fixed cost marginal cost; total profit supply;...

1. Command-and-control policies and market-based policies are policies used to deal with externalities. Provide a specific...

1. Command-and-control policies and market-based policies are policies used to deal with externalities. Provide a specific example of each policy in the economy today and explain how they work. 2. “Any public good is worth producing because it benefits so many people.” Do you agree with this statement? If not, how would you decide which public good should be produced and which should not? 3. Explain why there is excess environmental pollution in our society?

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What is the difference between a market-based solution and a command and control solution, with respect...

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