The drainage of waste products from the chemical factory, Ultra Chemicals, situated along the banks of the Misty River h
Posted: Mon Apr 25, 2022 8:09 am
The drainage of waste products from the chemical factory, Ultra
Chemicals, situated along the banks of the Misty River has led to
the formation of a dead zone in the river that cannot support
aquatic life
a. Without any government intervention, will the Ultra Chemical
produce a socially optimal quantity? Why or why not? Explain your
answer in 200 words or less with the help of suitable diagrams. (5
marks)
b. Does Ultra Chemical impose a deadweight loss on the
society? Explain in 100 words or less. Draw the diagram to show the
deadweight loss to the society. (3 marks)
c. How can a government intervene to improve upon the outcome
from society’s point of view? Explain in 100 words or less. Diagram
not needed. (2 marks)
Chemicals, situated along the banks of the Misty River has led to
the formation of a dead zone in the river that cannot support
aquatic life
a. Without any government intervention, will the Ultra Chemical
produce a socially optimal quantity? Why or why not? Explain your
answer in 200 words or less with the help of suitable diagrams. (5
marks)
b. Does Ultra Chemical impose a deadweight loss on the
society? Explain in 100 words or less. Draw the diagram to show the
deadweight loss to the society. (3 marks)
c. How can a government intervene to improve upon the outcome
from society’s point of view? Explain in 100 words or less. Diagram
not needed. (2 marks)