2. Consider the following diagram showing a marginal damage curve, a marginal abatement cost curve and an optimal emission fee of $80 per ton. $220 MAC MD $80 so Tons of Emissions 50 100 Use the diagram and a bit of geometry to calculate the following values. A. The total dollar value of emissions fees paid under this system. B. The total damage done at the socially optimal outcome. C. The total abatement cost at the socially optimal outcome. D. The total dead weight loss that would result if a standard were imposed that resulted in zero damage from these emissions. E. The total dead weight loss that would result if there was no regulation of emissions and emitters were allowed to emit as much as they wanted to emit. Just need help with E mainly.
2. Consider the following diagram showing a marginal damage curve, a marginal abatement cost curve and an optimal emission fee of $80 per ton. $220 MAC MD $80 so Tons of Emissions 50 100 Use the diagram and a bit of geometry to calculate the following values. A. The total dollar value of emissions fees paid under this system. B. The total damage done at the socially optimal outcome. C. The total abatement cost at the socially optimal outcome. D. The total dead weight loss that would result if a standard were imposed that resulted in zero damage from these emissions. E. The total dead weight loss that would result if there was no regulation of emissions and emitters were allowed to emit as much as they wanted to emit. Just need help with E mainly.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. Consider the following diagram showing a marginal damage curve, a marginal
abatement cost curve and an optimal emission fee of $80 per ton.
$220 MAC
MD
$80
so
Tons of Emissions
50
100
Use the diagram and a bit of geometry to calculate the following values.
A. The total dollar value of emissions fees paid under this system.
B. The total damage done at the socially optimal outcome.
C. The total abatement cost at the socially optimal outcome.
D. The total dead weight loss that would result if a standard were imposed that resulted
in zero damage from these emissions.
E. The total dead weight loss that would result if there was no regulation of emissions
and emitters were allowed to emit as much as they wanted to emit.
Just need help with E mainly.
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