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If the marginal cost of preservation is $500 per mile, how many miles would be preserved in an efficient allocation? How large is the economic surplus?
Why would a possessory entitlement system be more efficient in a modern society or a primitive society?
As you examine the key forces shaping the future, what examples of positive and negative feedback loops can you uncover?
How can we ever hope to establish in advance whether one is a better view than the other? What criteria might be proposed for evaluating predictions?
In a dynamic efficient allocation, how would the extraction profile in the second version differ from the first?
Given this discount rate what would be the efficient price in the two periods? What would be the marginal user cost in each period?
The environmental sustainability criterion differs in important ways from strong sustainability. When might the two criteria lead to different choices? Why?
If the exposed population is four million people, what is the implied value of a statistical life?
Assuming these numbers are correct, would you recommend that the Coast Guard increase, decrease, or hold at the current level their enforcement activity? Why?
How would the maximum amount spent now to eliminate those damages change if the discount rate is 2 percent, rather than 10 percent?
Why isn't an exclusive use of method 3 cost-effective? What is the cost-effective outcome in that case?
Find the consumer and producer surplus associated with the resulting allocation. Compare this price control allocation to the monopoly allocation in part.
During a worldwide recession in 1983, the oil cartel began to lower prices. Why would a recession make the cartel more vulnerable to price cutting?
Why should this proposal become public policy? Why or why not?
Compare the effects of a per-unit tax on the depletable resource to an equivalent per-unit subsidy on solar energy. Would they produce the same switch point?
how would the ultimate cumulative amount taken out of the ground be affected by an increase in the discount rate.
Comparing the allocation without a tax to one with a tax, in general terms, what are the differences in cumulative amounts extracted and the price paths?
Consider an increasing marginal-cost depletable resource with no effective substitute. How would the allocation of that resource over time be affected?
Compared to the case where the total amount of a constant-MEC resource is fixed, how would the efficient allocation of this resource over two periods differ?
One current practice is to calculate the years remaining for a depletable resource by taking the prevailing estimates. How useful is that calculation? Why?
Consider the effect of population growth on the allocation on the dynamic efficient allocation of a depletable. Explain the intuition behind your results.
How would the possibility of rampant illegal disposal affect your answer? Would a deposit-refund on large components of trash help to reduce illegal disposal?
If the two approaches are designed to yield the same amount of revenue, will they have the same effect on the allocation of the mine over time? Why or why not?
What are the income-distribution consequences of fashion? Can the need to be seen driving a new car by the rich be a boon to those with lower incomes?
On what grounds, if any, is government intervention called for? What differences should be noticed among those states that do nothing?