31-3./ Examine the following marginal costs and mar- 31-5. ginal benefits associated with water cleanliness in a given locale: Quantity of Clean Water (%) Marginal Cost ($) Marginal Benefit ($) 3,000 200,000 15,000 f2,0.00 50,000 C4 0 85,000 47 100,000 S3 ndInfinite le 120,0008900 90,0003g000 85,000 SS,00 40,000 (5,000 ibbe 20 40 60 80 100 a. What is the optimal degree of water cleanliness? b. What is the optimal degree of water pollution? c. Suppose that a company creates a food additive that offsets most of the harmful effects of drink- ing polluted water. As a result, the marginal benefit of water cleanliness declines by $40,000 at each degree of water cleanliness at or less than 80 percent. What is the optimal degree of water cleanliness after this change? 31 31-4. Consider the diagram below, which displays the

31-3./ Examine the following marginal costs and mar- 31-5. ginal benefits associated with water cleanliness in a given locale: Quantity of Clean Water (%) Marginal Cost ($) Marginal Benefit ($) 3,000 200,000 15,000 f2,0.00 50,000 C4 0 85,000 47 100,000 S3 ndInfinite le 120,0008900 90,0003g000 85,000 SS,00 40,000 (5,000 ibbe 20 40 60 80 100 a. What is the optimal degree of water cleanliness? b. What is the optimal degree of water pollution? c. Suppose that a company creates a food additive that offsets most of the harmful effects of drink- ing polluted water. As a result, the marginal benefit of water cleanliness declines by $40,000 at each degree of water cleanliness at or less than 80 percent. What is the optimal degree of water cleanliness after this change? 31 31-4. Consider the diagram below, which displays the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For the following statement given below, indicate whether you tend to agree, disagree, or are uncertain about the truth of the statement, and explain your reasoning. Graphical analysis is encouraged. "A free market will product too much output when negative externalities exist and to0 little output if positive externalities exist."
Solve it correctly please. I will rate accordingly.
What is a negative externality? What is an example of a negative externality? What is a solution for dealing with a negative externality?
Are socially efficient level of emission and market efficiency is equal? Explain with help of diagram?
No hand written solution Afirm has an industrial plant that emits pollutants into a town’s lake. The plant’s marginal abatement function is MAC= 200 – 0.5E and damages caused by its emissions are given by MD = 2E where emissions are in kg. per day. What is the socially efficient level of emissions from this plant? Illustrate this in a graph. As an incentive to reduce emissions to the socially efficient level, government offers to pay the firm for each kg. of emissions it abates per day from this plant. What subsidy per kg. should the government offer? If the plant abates to the socially efficient level of emissions, what total subsidy payment would the firm receive? Identify the area in your graph. How much better or worse off would the firm be compared to if it did no abating? Identify the area in your graph. What would be the net benefit to society if we pay the firm to reduce the plant’s emissions to the socially efficient level? Identify this area in your graph.
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Q. 1
Draw a demand curve and describe the external factors thatdetermine demand.
Hand written solution is not allowed please my dear.
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In the graph below, circle the efficient level of emissions.