(External Costs with Variable Technology) Think of an industry that pollutes the water and has access to vari- able technology for reducing that pollution. Graphically illustrate and explain the impact of each of the follow- ing, other things constant, on the optimal level of water quality: a. New evidence is discovered about a greater risk of cancer from water pollution. b. The cost of pollution-control equipment increases. c. A technological improvement reduces the cost of pol- lution control.
(External Costs with Variable Technology) Think of an industry that pollutes the water and has access to vari- able technology for reducing that pollution. Graphically illustrate and explain the impact of each of the follow- ing, other things constant, on the optimal level of water quality: a. New evidence is discovered about a greater risk of cancer from water pollution. b. The cost of pollution-control equipment increases. c. A technological improvement reduces the cost of pol- lution control.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6. (External Costs with Variable Technology) Think of an industry that pollutes the water and has access to vari- able technology for reducing that pollution. Graphically illustrate and explain the impact of each of the follow- ing, other things constant, on the optimal level of water quality:
a. New evidence is discovered about a greater risk of cancer from water pollution.
b. The cost of pollution-control equipment increases.
c. A technological improvement reduces the cost of pol- lution control.
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