This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Two companies in the same town must decide whether to pollute. Choosing to pollute means the company ... (Read 102 times)

redpassion

  • Full Member
  • ***
  • Posts: 151
on: Nov 23, 2022
Two companies in the same town must decide whether to pollute. Choosing to pollute means the company will increase revenue, but they will also face higher medical costs because workers get sick more frequently.
• If company A pollutes and B does not, then company A increases revenue by $60 million, but incurs additional medical costs of $45 million and company B incurs additional medical costs of $45 million.
• If company B pollutes and A does not, the company B increases revenue by $60 million, but incurs additional medical costs of $45 million and company A incurs additional medical costs of $45 million.
• If neither company pollutes, both companies earn zero profits
• If both companies pollute, both companies increase revenue by $60 million, but both companies also incur additional medical costs of $90 million.
What is the outcome if both companies do what is in their own best interest? Is this outcome socially optimal?
◦ company A pollutes and company B does not, yes
◦ company B pollutes and company A does not, no
◦ neither company pollutes, yes
◦ both companies pollute, no
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by redpassion on Nov 23, 2022

kalimarie

  • Full Member
  • ***
  • Posts: 150
Reply #1 on: Nov 23, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


redpassion

  • Member
  • Posts: 151
Reply 2 on: Nov 23, 2022
:D TYSM

mcarey591

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Checklist for Choosing a Massage Table Cont. Checklist for Choosing a Massage Table Cont.
Checklist for Choosing a Massage Table Cont. Checklist for Choosing a Massage Table Cont.
Many VOCs pollute indoor air Many VOCs pollute indoor air
Eating Breakfast Means More Energy and Fewer Calories throughout the Day Eating Breakfast Means More Energy and Fewer Calories throughout the Day
An organizational specialist is hired as a consultant to a company planning to open a coffee ... An organizational specialist is hired as a consultant to a company planning to open a coffee ...
Video: Types of Transport - Uniport, Antiport and Symport (Glucose and Na+K+ Transporters)

For a complete list of videos, visit our video library