A tax on water pollution is proposed for four factories in a manufacturing town of 110,000 people. The Select Board estimates the tax will reduce pollution to such an extent that it will benefit each resident by an equivalent of $200. The tax will also reduce profits to the town's four large factories by $2,000,000 each. How much should the town's citizens be willing to spend to ensure the passage of the tax?

A tax on water pollution is proposed for four factories in a manufacturing town of 110,000 people. The Select Board estimates the tax will reduce pollution to such an extent that it will benefit each resident by an equivalent of $200. The tax will also reduce profits to the town's four large factories by $2,000,000 each. How much should the town's citizens be willing to spend to ensure the passage of the tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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