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Optimal investment in cyber-security and cyber-insurance

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EXAM-STYLE QUESTIONS

Questions on negative externalities

Steve Stoddard presents a series of exam-style questions on topics covered in articles featured in this issue of ECONOMIC REVIEW. Answers to these questions can be found online at EconomicReviewExtras

Industrial pollution often generates negative production externalities for the local environment and those living in the area. Here is a table with estimates of the costs of production for a particular industry and the social cost experienced by the local community.

This industry is experiencing an increasing demand for its output and therefore output is expected to grow from the current output level of 100,000 units per year to 500,000 units in a 4 years’ time.

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Previous

Optimal investment in cyber-security and cyber-insurance

Next

Policies for the environment

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