ECO 202 Microeconomics
Question 1. Provide solutions for thefollowing:
a) Discuss the differences between a policy protectingcompetition and policy protecting competitors.
b) Explain the concept of optimal pollution. Why might an ardentenvironmentalist and an economist have different views as to where\"optimal\" was?
c) Wind power is subsidized by the government with tax subsidiesand purchase mandates. Explain how externalities theory mightjustify such subsidies. Is the wind subsidy an example of cronycapitalism? Why or why not?
d) In what ways are unions similar and/or different frommonopolists?
