Pure, Per Se and Natural Monopolies

| March 22, 2015

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 emitted by and local power plant, answer the following questions:

1. What two policies could you use to reduce the total amount of emissions?

2.Why do you think they each would work?

3. What would the benefits of each action be (besideemissions reduction)?

4.What would the costs of each action be?

5. how would you decide what was the best level of emission reduction?

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