$A P₁ C1 a₁ bin a* MC WTP jarij 580008 di gridion a 208354 (Pollution abatement) a) At abatement level al, is too much or two little pollution abatement occurring?

ENGR.ECONOMIC ANALYSIS
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b) At abatement level a*, does the firm still emit pollution? Explain why or why not some
levels of pollution are socially desirable.
Transcribed Image Text:b) At abatement level a*, does the firm still emit pollution? Explain why or why not some levels of pollution are socially desirable.
The below graph depicts societies willingness to pay for pollution abatement and the
marginal cost of reducing pollution.
$A
P₁
C₁1
a₁ or a*
1974
MC
17
4²
179 1680 20000
WTP
Thoog
sritenidion
a
(Pollution abatement)
a) At abatement level al, is too much or two little pollution abatement occurring?
Transcribed Image Text:The below graph depicts societies willingness to pay for pollution abatement and the marginal cost of reducing pollution. $A P₁ C₁1 a₁ or a* 1974 MC 17 4² 179 1680 20000 WTP Thoog sritenidion a (Pollution abatement) a) At abatement level al, is too much or two little pollution abatement occurring?
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