Each of the scenarios below describe a situation that result in some sort of pos

Question

Each of the scenarios below describe a situation that result in some sort of positive or negative externality. Please decide what action an economist might recommend in response to each externality.

Question 9 of 17 Ma sapling learning Each of the scenarios below describe a situation that result in some sort of positive or negative externality Please decide what action an economist might recommend in response to each externality. MongoCorp, a producer of industrial plastics, textiles, and chemical products releases harmful levels of nitrogen dioxide into the air, contributing significantly to air pollution in nearby cities. Omnicrom, a pharmaceutical research and development firm, has developed a new treatment for halitosis, the medical term for chronic bad breath, that promises to treat both the bad taste in patients mouths and the foul odor that bothers those close to them new report is released by the American Society for Rural Dwellings, concluding that living in the countryside is good for your health. As a result, many homeowners decide to build new homes in the country, which stimulates the local economy of many small towns. Myploy Fish Sauce company produces some of the most in-demand fish sauce in the world, prized for its pungent aroma and lingering taste However, every year, as part of the production process for fish sauce, Myploy produces millions of tons of potentially toxic fish sludge which is drained into local rivers and streams Espalda, a ergonomic furniture manufacturer, has created a new chair with a unique design shown to improve posture and increase productivity while also leading to a better mood for the person using the chair. Issue a Patent Subsidize Levy a Tax

Explanation / Answer

Mongocorp: Levy a tax (To demote negative externality) Omnicrom: Issue a patent (to promote positive externality) Rural dwelling: subsidize (to promote positive externality) Myploy : Levy a tax (To demote negative externality) Espalda: Issue a patent (to promote positive externality)

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