Price (dollars per ton) The graph ilustrates the unregulated market for uranium

Question

Price (dollars per ton) The graph ilustrates the unregulated market for uranium ts When the mines prodace uranium, they also create waste which they dump into a tives that runs through a small town The marginal external cost of the dumped waste is equal to twice the marginal private cost So the marginal social cost of preducing uranium is theee tines the marginal privale cost What is the quanity of uranium produced i no one owns the river? What is the deadweight loss from uranium production? 260 The qarity of uraram produced if no one owns the me istons a week The deadweight loss rom uranium production is 10 20 30Soo so ndo Quantity (tons per week) Enter your answer in each of the ansaer boxes @

Explanation / Answer

1 the quantity produce will be where the D and S curve intersects. That Q = 60.

2. DWL = 0.5*20*80 = 800. To calculate DWL we need to incorporate the external cost which will shift the S curve upward this will decrease equilibrium outputand increase price. The changed supply shows the outcome under socially efficient scenario.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.