A. The chemicals firm produces additional emissions as long as the marginal social benefit of doing so exceeds $40. OB. The chemicals firm chooses the socially efficient amount of emissions. C. The total cost of pollution experienced by the hatchery is $80. OD. The government collects $160 in pollution tax revenue. OE. All of the above are true.
A. The chemicals firm produces additional emissions as long as the marginal social benefit of doing so exceeds $40. OB. The chemicals firm chooses the socially efficient amount of emissions. C. The total cost of pollution experienced by the hatchery is $80. OD. The government collects $160 in pollution tax revenue. OE. All of the above are true.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 7SQ
Related questions
Question
![A. The chemicals firm produces additional emissions as long as the marginal social
benefit of doing so exceeds $40.
OB. The chemicals firm chooses the socially efficient amount of emissions.
OC. The total cost of pollution experienced by the hatchery is $80.
O D. The government collects $160 in pollution tax revenue.
OE. All of the above are true.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a5ae68f-9b8c-40fd-acc4-5e8548032b37%2Ffb6b9cb8-393c-46a6-94bb-16fcd8d1925d%2Fbqks30x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A. The chemicals firm produces additional emissions as long as the marginal social
benefit of doing so exceeds $40.
OB. The chemicals firm chooses the socially efficient amount of emissions.
OC. The total cost of pollution experienced by the hatchery is $80.
O D. The government collects $160 in pollution tax revenue.
OE. All of the above are true.
![The figure above shows the marginal social cost and marginal social benefit curves
for a chemical producing firm operating upstream from a hatchery. If the
government imposes a $40 tax per ton of emissions, which of the following is true?
MSC, MSB
($/ton)
100
MSC
90
80A
70
60
50
40
30
20
MSB
10
B.
1.
4.
10
Quantity of Emissions (tons per day)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a5ae68f-9b8c-40fd-acc4-5e8548032b37%2Ffb6b9cb8-393c-46a6-94bb-16fcd8d1925d%2Feaiuw7s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The figure above shows the marginal social cost and marginal social benefit curves
for a chemical producing firm operating upstream from a hatchery. If the
government imposes a $40 tax per ton of emissions, which of the following is true?
MSC, MSB
($/ton)
100
MSC
90
80A
70
60
50
40
30
20
MSB
10
B.
1.
4.
10
Quantity of Emissions (tons per day)
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