4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 250 50 100 150 200 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?
4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 250 50 100 150 200 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is
currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton
of pollution emitted.
$200
Marginal
cleanup cost
$180
$160
$140
$120
$100
$80
$60
$40
$20
Pollution
Cleanup
250
50
100
150
200
Tons
a. How much would the firm spend abating pollution?
b. How much would the firm pay in pollution taxes?
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