ECS3704
Assignment 1 Semester 2 2024
Detailed Solutions, References & Explanations
Unique number:
Due Date: August 2024
QUESTION 1
In the case of pollution created by steel production, government intervention may be
necessary to address the negative externalities, as illustrated in Figure below. The
diagram shows the private demand curve (D = MSB) and the private supply or marginal
cost curve (S_P = MPC).
Terms of use
By making use of this document you agree to:
• Use this document as a guide for learning, comparison and reference purpose,
• Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
• Fully accept the consequences should you plagiarise or misuse this document.
Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is” without
any representations or warranties, express or implied. The author assumes no liability as a result of
reliance and use of the contents of this document. This document is to be used for comparison, research
and reference purposes ONLY. No part of this document may be reproduced, resold or transmitted in any
form or by any means.
Assignment 1 Semester 2 2024
Detailed Solutions, References & Explanations
Unique number:
Due Date: August 2024
QUESTION 1
In the case of pollution created by steel production, government intervention may be
necessary to address the negative externalities, as illustrated in Figure below. The
diagram shows the private demand curve (D = MSB) and the private supply or marginal
cost curve (S_P = MPC).
Terms of use
By making use of this document you agree to:
• Use this document as a guide for learning, comparison and reference purpose,
• Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
• Fully accept the consequences should you plagiarise or misuse this document.
Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is” without
any representations or warranties, express or implied. The author assumes no liability as a result of
reliance and use of the contents of this document. This document is to be used for comparison, research
and reference purposes ONLY. No part of this document may be reproduced, resold or transmitted in any
form or by any means.
