A beekeeper decides to locate her business on a plot of land that is between an apple orchard and an elementary school. Describe a possible negative externality and a possible positive externality that may result.
2. Three firms make rubber duckies for playtime in the bathtub: the firms are called Huey, Dewey, and Louie. The first row of the table that follows shows the current level of chemicals emitted into the air by their production processes. The following rows show how much it would cost each firm to reduce pollution by additional increments of 100 pounds. First, calculate the cost if each firm is required to reduce its own emissions by one-third. Then, imagine that each firm is issued marketable permits equal to its current level of emissions, but the quantity that one can emit with those permits will shrink by one-third. With a system of tradeable permits, what is the cost of reducing emissions by one-third?

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Huey Dewey Louie Current emissions of chemicals in pounds 600 900 1200 $25 Cost of reducing emissions by 100 pounds $20 $7 Cost of reducing emissions by a second 100 pounds $25 $14 $32 $30 Cost of reducing emissions by a third 100 pounds $21 $40 $35 $28 $48 Cost of reducing emissions by a fourth 100 pounds $40 $60 Cost of reducing emissions by a fifth 100 pounds $36