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Butoxors [25]
3 years ago
7

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, ope

rators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.
If the government intervenes and corrects the externality in the situation described above, we would expect:
A) The demand for the output from the hydroelectric power plants to decrease
B) The supply of the output from the hydroelectric power plants to decrease
C) The demand for the output from the hydroelectric power plants to increase
D) The supply of the output from the hydroelectric power plants to increase
Business
1 answer:
Hoochie [10]3 years ago
3 0

Answer:

D) The supply of the output from the hydroelectric power plants to increase

Explanation:

The externality here is a negative one where the hydroelectric plants has to bear the cost of pollution as the paper mills operates.

Correcting means to make the paper mills pay for the external costs of their production and compensate the power plant for the additional cost that incurred as they have to clean up the water.

As the cost of production reduces, the power plant will be more willing to supply electricity at similar prices, ie. their supply curve will shift to the right. It will intersect with the demand curve of the consumers at a point with higher quantity (and maybe lower price)

In other words, they will supply more electricity.

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Igoryamba

Answer:

The healthcare industry can be explained as the medical industry or healthcare industry. It represent to the health economy.

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The industries that are represented in the community are the combination of integration aggregation sectors. These sectors provide the economic system to the society or community. For finance, the healthcare industries ae very important. These care the building blocks of economy of a country. The healthcare industry consists of Hospitals, mental and dental practice activities, midwives, nurses, psychologist, psychiatrist. These industries as grow as the people get employment. Healthcare industry is the big tycoon profession that help government in their economic growth. Many employment will occur due to these industries.

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Taya2010 [7]
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lina2011 [118]

Answer:

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