The graph illustrates the marginal abatement cost (MAC) and marginal damage cost curve (MDC) of pollution emissions. Marginal cost $62 54 35 19 15 0 23 MDC MAC 45 61 87 Quantity of pollution emissions (tons) 2. What is the socially optimal Optimal pollution emissions: 1.For the 1st unit of pollution emissions, the MAC is A. equal to the MDC. B. less than the MDC. C. greater than the MDC. quantity of pollution emissions? tons 3.A market will produce A. Less than the socially optimal quantity B. More than the socially optimal quantity C. The socially optimal quantity of pollution emissions.

The graph illustrates the marginal abatement cost (MAC) and marginal damage cost curve (MDC) of pollution emissions. Marginal cost $62 54 35 19 15 0 23 MDC MAC 45 61 87 Quantity of pollution emissions (tons) 2. What is the socially optimal Optimal pollution emissions: 1.For the 1st unit of pollution emissions, the MAC is A. equal to the MDC. B. less than the MDC. C. greater than the MDC. quantity of pollution emissions? tons 3.A market will produce A. Less than the socially optimal quantity B. More than the socially optimal quantity C. The socially optimal quantity of pollution emissions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4 This is a graph reprinted from Section 12.1 the Economics of Pollution. Please explain the graph with particular attention paid to why there are two supply curves. How can a government use this graph to establish pollution controls?
3. Suppose the EPA wants to reduce pollution to the socially optimal level. Based on the data in the table below, what is the optimal level of pollution? Total cleanup Total Total (tons) Benefit Cost 50 2 85 18 3 115 28 4 140 39 5 160 51 179 63 7 197 76 8 214 90 230 105 10 245 120 11 259 137 12 273 156 13 286 177 14 299 200 15 311 225
3. The effect of negative externalities on the optimal quantityof consumption Consider the market for pharmaceuticals. Suppose that a pharmaceutical factory dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the factory. Producing additional pharmaceuticals imposes a constant per-unit external cost of $280. The following graph shows the demand (private value) curve and the supply (private cost) curve for pharmaceuticals. Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $280 per unit. PRICE (Dollars per unit of pharmaceuticals) 800 720 640 560 480 400 320 240 160 80 O 1 2 3 □ O O ㅁ 4 Supply (Private Cost) Demand (Private Value) 5 6 7 QUANTITY (Units of pharmaceuticals) Social Cost ? The market equilibrium quantity is units of pharmaceuticals, but the socially optimal quantity of pharmaceuticals production is units. To create an incentive for the firm to produce the socially optimal…
1. why marine pollution is considered a negative externality? 2. Suggest a relevant government policy that would yield an efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome as it relates to marine pollution. 3. How will the imposition of the chosen government policy impact consumer surplus, producer surplus, and total surplus as it relates to marine pollution.
5B. Two textile mills, located across a river from each other, are polluting the river. The marginal costs of pollution reduction for each firm are MCE₁ = 4E₁ + 4 MCE2 = 4/3E2 + 4/3, where E is the reduction in pollution from unregulated levels. The associated marginal social benefit is estimated to be MSB = 10-E, where E = E₁ + E₂. a. What is the socially optimal level of water-pollution reduction? c. If instead the government imposed a standard requiring each firm to equally reduce the level of pollution to achieve the socially optimal solution in part (i), what are the costs for each firm?
2:28 PM Sun Nov 20 ☎77% + gnment... Submit
Solve it correctly please. I will rate accordingly.
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.
Hi hlo Expert Hand written solution is not allowed.
The effect of external costs on the efficient level Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant external cost of 5330 per ton. The foliowing graph shows the demand (private value) curve and the supply (private cost) curve for steel.
5. Which of the following best describes the issuance of permits to pollute as a way of influencing the amount of pollution? Permits to pollute: a. encourage business to pollute.b. should be purchased by those whose pollution is the least expensive to eliminate.c. should be purchased by those whose pollution is the most expensive to eliminate.d. are preferable over taxes because they can be limited to exactly the efficient amount of pollution.
12. Give four (4) economic activities that generate both positive and negative externalities?