If the government intervenes and corrects the externality in the situation described below, we would expect:
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.
A. The output of the paper mills to increase
B. The price of paper from the mills to decrease
C. Production of the hydroelectric power plants to decrease
D. Production in the paper mills to decrease
D. Production in the paper mills to decrease
You might also like to view...
Taiwan and Jamaica are both islands that have pursued export-oriented development strategies, but Jamaica has experienced increases in unemployment and poverty, while Taiwan has experienced decreases. How might you explain this?
What will be an ideal response?
Which of the following sellers is most able to perfectly price discriminate?
A) a college or university B) the post office C) a clothing store D) a grocery supermarket