Answer to Question #213239 in Finance for Ari

Question

Mr Makhani has just retired and received R1000 000 net lump sum income from his employer. He decided to spend it all on a tree farm, he planted pine trees for plumbing materials. Environmental Economists argue that planting trees produces market failure as the market fails to consider positive production spillover effects generated by CO2 capturing effect of tree plantations. With the aid of suitable diagrams, illustrate and discuss the positive external effect of Mr. Makhani’s business and indicate the necessary intervention by Government aimed at internalizing the effect of such spillovers. 

Answer 1

Dear Ari, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order