8/20/2019 TUGAS 3 EKLING

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Homework Problem for

Environmental Economics

March 9, 2014

•  Problem 1.Answer the following questions with some examples.

1. What are the private and public goods?

2. What is the Externality?

3. What is the Supply and Demand Curves?

4. What is the Shortage and Surplus?

5. What are the factors that can shift the Supply/Demand Curves?

6. What is the Monopoly

•  Problem 2.A pesticide maker can dump waste into a lake or truck it to a save storage place. Themarginal cost of trucking is a $100 a ton. A trout farm uses the lake, and the table shows

how its profit depends on the quantity of waste dumped.

Quantityof Waste(Ton perweek)

Trout farmProfit(dollars perweek)

0 10001 9502 8753 775

4 6455 5006 3257 125

1. What is the efficient amount of waste to be dumped into the lake?

2. If the trout farm owns the lake, how much does the pesticide maker pay to the farmerper ton?

3. If the pesticide maker owns the lake, how much wastes dumped and how much rentdoes the farmer pay the factory for the use of the lake?

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