(1) A TV factory that pollutes a river with toxic chemicals. The factory has internal costs, it has to pay its workers,

[answerhappygod]

1 A Tv Factory That Pollutes A River With Toxic Chemicals The Factory Has Internal Costs It Has To Pay Its Workers 1 (50.52 KiB) Viewed 49 times

(1) A TV factory that pollutes a river with toxic chemicals. The factory has internal costs, it has to pay its workers, buy raw materials, pay for energy, and it uses those costs to determine how many TVs to produce. But there are also external costs, associated with polluting the waterways, like dead fish, contaminated drinking water, and people getting sick. Those external costs are paid by people downstream, and they are likely to be ignored by the factory owner. A. If the TV factory use MR MC to determine its quantity of production, and the government use MR-MSC to set the quota of the TV production, will the factory over- product? B. What is the reason of the problem? C. Try to think about the regulatory solutions and market-based solutions on the view of the government. D. Which solutions would you support most? Give the reasons. I (2) Starting in 2007, inflation grew rapidly in Zimbabwe. Prices nearly doubled every 24 hours, and business revised prices several times a day. A loaf of bread cost what 12 new cars did a decade ago. The government issued currency in huge denominations to keep us with rising prices. In 2009, the hundred trillion dollar bill, the largest denomination of currency was issued. Ruins wealth, to spend as quickly as possible rather than save and lend, no money available to fund new businesses, all that uncertainty limits foreign investment and trade. A: How many types of inflation are divided according to the level of price raising? B: What effects will the hyperinflation brought? C. What kinds of monetary policy or physical policy the governments taken to solve these problems? O