Unit 4 – Pure, Per Se and Natural Monopolies
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions: * What two policies could you use to reduce the total amount of emissions? * Per our text book, the gases and particulates that are emitted by local power plants are a mixture of harmful chemicals. These chemicals are released and then pollute our air that we breathed every day, which cause us a negative externality. We all deserve to breathe fresh air, and not polluted air. Air pollution can cause people to suffer from several types of illnesses. Some of those illnesses may include: complications with asthma, pneumonia, or other lung disease, headaches, difficulty breathing, and it can even weaken one’s immune system. With this being said, and as a concerned policy maker, it is very important to come up with some ways to help eliminated some gases and particulates that are emitted by local power plants. * There are many plants, as well as other factors, that play into the role of air pollution. One way I think we can correct the effects of gases and particulates emitted by a local power plant would be to eliminate how long, or how often they can run at a given time. I feel that power plants basically run around the clock. However, if they can only run half that time, then it will help on air pollution greatly. So, instead of working 24/7, they could have shifts. Some days they would be open for 12 hours at night and other days they would be open for 12 hours during the day. With these shifts, the plant wouldn’t continuously be putting out coal and other particulates that they use to run their plant. * Another policy would be to change the local power...
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