Emissions Marginal Abatement Total Abatement Cost Total Tax Bill at Total Costs (tons/month) Cost $100/ton 10 1000 15 900 8 30 800 7 50 700 70 600 100 500 4 120 400 3 150 300 2 185 200 1 230 100 290 Refer to the Table above. If the firm above faced an emissions charge of $150 per ton/month, at what level of emissions does the firm minimize total abatement cost? 8. O 5 4
Emissions Marginal Abatement Total Abatement Cost Total Tax Bill at Total Costs (tons/month) Cost $100/ton 10 1000 15 900 8 30 800 7 50 700 70 600 100 500 4 120 400 3 150 300 2 185 200 1 230 100 290 Refer to the Table above. If the firm above faced an emissions charge of $150 per ton/month, at what level of emissions does the firm minimize total abatement cost? 8. O 5 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
7.

Transcribed Image Text:Emissions
Marginal Abatement
Total Abatement Cost
Total Tax Bill at
Total Costs
(tons/month)
Cost
$100/ton
10
1000
9
15
900
8.
30
800
7
50
700
6.
70
600
5
100
500
4
120
400
3
150
300
2
185
200
1
230
100
290
Refer to the Table above. If the firm above faced an emissions charge of $150 per
ton/month, at what level of emissions does the firm minimize total abatement cost?
8.
3
5
4

Transcribed Image Text:Question 5
Refer to the Table above. If a regulatory agency simply mandated that the firm could
emit a maximum of 5 tons/month and there were no emission charges, what would
the firm's total abatement costs be?
$500
$765
$265
$100
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