ЕOC 11.04Consider two car factories, one run by Ford and the other run by Honda, that both create pollution. The government wants toreduce how much these two factories pollute by 40 tons, so only allow factories to pollute if they have a permit. Each factory isgiven 20 pollution permits. A business can use a permit to emit one ton of pollution or they can sell it to another business (andlose the ability to pollute). To lower pollution it costs Ford $200 per ton of pollutant removed and it costs Honda $100 per tonremoved. After Ford and Honda have met to trade their permits with each other, what we expect to happen?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.Honda emits 20 tons of pollutants and Ford emits 20 tons of pollutants.aHonda no longer pollutes and Ford does not lower how much it produces.Honda increases its pollution and Ford lowers its pollution.Ford no longer pollutes and Honda does not lower how much it produces.

option b is the correct answer Hondo no longer polluts and Ford does not lower how much it…

Answered: EOC 11.04 Consider two car factories,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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…………………… requires that the potential and actual costs of pollution should be borne by the person or organization responsible for causing environmental pollution ISO 14001 Product stewardship Eco-efficiency Polluter Pays Principle (PPP
None
A T, C Pollution The above graph illustrates the marginal pollution cost per ton of goods that a firm produces. Assume the firm currently has no regulation and will produce at the point Qmax. Suppose a pollution tax per ton is placed on the firm (T1). What area represents the tax paid by the firm? C only A+B A+B+C
two types of consumers( workers an retirees) share a community with a polluting cheese factory. the polution is nonrival and nonexcludable. the total damage to workers is p2 where p is the amount of pollution and the total damage to retirees is 3p2 . thus marginal damage to workers is 2p and marginal damage to retirees is 6p. according to an anlaysis by consulting engineers, the cheese factory saves 20p-p2 by pollluting p, for a marginal savings of 20-2p. a.Find the aggregate(including both types of sonsumers) marginal damage for the public bad. b..graph the marginal savings and aggregate marginal damage curves with pollution on the horizontal axis. c. how much will the cheese factory pollute in the abscence of any regulation or bargaining? what is the societys optimal level of pollution? d. starting from the uncontrolled level of pollution calculated in part(c), find the marginal willingness to pay for pollution abatment, A, for each consumer class. (abatment is the reduction in…
ģi Refer to the table below, which presents information on a market that provides positive externalities on society. Private marginal benefit Marginal cost $300,000 $340,000 $310,000 $330,000 $320,000 $320,000 $330,000 $310,000 $340,000 $300,000 $350,000 $290,000 Calculate the quantity that would be produced if society did not incorporate the social marginal benefits of this good or service. Type your answer... Quantity 6,000 7,000 8,000 9,000 10,000 11,000 F1 a 2 W JAN X Q 18 F2 # 3 20 F3 F $ 4 F4 R % 5 F5 T MacBook Air A 6 F6 Y & 887 stv F7 U * 00 8 FB O ( 9 Private+social marginal benefit $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 F9 1 W 0 F10 Aa zoom P F11 Submit F12 = IT ľ
Back to Assignment Attempts Keep the Highest / 2 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. Which of the following types of private solutions to the externality of pollution has occurred in this case? O Charities O Integration of different types of businesses through merger or acquisition O Moral codes and social sanctions O Contracts It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of Grade It Now Save & Continue…
A profit-maximizing firm operating two factories currently emits 10 tons of pollution. Marginal private benefit of each ton emitted at each factory is listed in the table below. If it must reduce pollution by 6 tons, how many tons would it continue to emit from Factory B? Marginal Private Benefit Factory B $14 $12 $9 Factory A $20 Ton $18 $15 $11 $7 3 4 $6 $3
Question 16 Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the private equilibrium quantity and the socially optimal quantity of flu shots produced? Group of answer choices They are equal. The private equilibrium quantity is greater than the socially optimal quantity. The private equilibrium quantity is less than the socially optimal quantity. There is not enough information to answer the question.
Supply curves for the production of oil in Sanaton are shown in the diagram below. Supply based on both private and private+social costs is shown. Answer the following questions based on the diagram. Supply (Private + Social) Supply (Private) VE (16000 $70 (22000,$59) Demand Price Quantity What is the equilibrium quantity when negative externalities of producing oil are not taken into account? What is the equilibrium price when negative externalities are not taken into account?
The table below gives a firm's marginal benefit of each ton of pollution. there is no private cost of pollution. If the government implements a $30 per ton tax on pollution, the firm reduces its pollution by how many tons? (Your answer should be an integer greater than or equal to zero.) Ton MPB 1234567∞ $68 $56 $45 $35 $26 $18 $11 8 $5
@ Refer to the table below, which describes the market for cigarettes in terms of marginal benefits, private marginal costs, and private+social marginal costs. Marginal benefits Private + social marginal costs $12 $8 $10 $10 $8 $12 $6 $14 $4 $16 Quantity 100 200 300 400 500 Calculate the equilibrium quantity of cigarettes that would be produced and sold if society incorporated the negative externalities of cigarettes by taxing cigarettes. Type your answer... == 3 80 F3 16 с $ 888 FA VER % DFL V 5 T G B FO MacBook Air Y Private marginal costs $4 $6 $8 $10 $12 H & 7 A tv NA F7 U N * 00 8 1 ( 9 M K F9 O O Aa zoom

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