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| Topic: |
Business
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| Number of pages / Number of words: |
15 / 4008 |
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The points A, B and C form a triangle, which illustrates the vastness of the negative externality. It is the cost of the negative externality. The diagram also shows that the pollution has caused a shift in the marginal social cost at point A to point C. The marginal social cost is now lower in price but, higher in the quantity of pollution...
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The green arrow represents the shift in the marginal social cost, which is caused by pollution. The red arrow represents the shift that could be caused through the use of tradable permits. In other words, the government is trying to shift the marginal private cost to the left using the tradable permits system, in order to lower the amount of pollution excreted at substantial cost savings...
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General points of the essay
ECON 101: Negative Externality
A Report On Emission In Negative Externality And Price Elasticity Of Demand Of Petroleum
Negative Message
Negative letter
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