Author Question: Government clean up toxic waste sites is _____. a. justified on public good grounds b. ... (Read 45 times)

WhattoUnderstand · **on:** Jul 1, 2018

Government clean up toxic waste sites is _____.

a. justified on public good grounds
b. justified on externality grounds
c. justified on equity grounds
d. justified on technical monopoly grounds

Question 2

Explain why the supply-and-demand model should not be used to analyze the market for jeans.

What will be an ideal response?

Swizqar · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

a

Answer to Question 2

Products in the jeans market are not identical (at least not in the consumers' eyes). The fact that there is only one manufacturer per brand gives that particular firm (limited) power over the price of its product. Thus, two conditions for the use of the model are not fulfilled.