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Economics Questions Why are market economies inefficient in meeting environmentally friendly outcomes? Is Pigovian tax socially efficient? Provide appropriate diagrams (Hint: One way to think

Economics Questions

  1. Why are market economies inefficient in meeting environmentally friendly outcomes? Is Pigovian tax socially efficient? Provide appropriate diagrams (Hint: One way to think of efficiency is when D=S. )
  2. Provide one example of a city/country/community that has successfully used taxes to reduce pollution.
  3. Discuss market structures. Identify the market structure facing Coles and Woolworths.
  4. What impact are home brands' products likely to have on future competition?

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