The following table shows the marginal costs for each of the four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $ 54, and for Firm A to eliminate a second unit of pollution it would cost an additional$67. Refer to Table 10-5. Suppose the government wants to reduce pollution from 16 units to 8 units and auctions off 8 pollution permits to achieve this goal. Which of the following is a likely auction price for the permits? a.$69b.$97c.$81d. 583 The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution fromtheir production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm Ato eliminate a second unit of pollution it would cost an additional $67.FirmO a. $69Ob. $97O c. $81O d. $83ABCDMarginal Cost to Eliminate(Dollars)First Unit Second Unit Third Unit Fourth Unit545754626768667382868291107108107111Refer to Table 10-5. Suppose the government wants to reduce pollution from 16 units to 8 units and auctions off 8pollution permits to achieve this goal. Which of the following is a likely auction price of the permits?

Marginal cost is the additional cost incurred by the firms with every additional unit of pollution.…

Answered: Firm O a. $69 Ob. $97 O c. $81 O d.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows the marginal costs for each of the four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $ 54, and for Firm A to eliminate a second unit of pollution it would cost an additional$67. Refer to Table 10-5. Suppose the government wants to reduce pollution from 16 units to 8 units and auctions off 8 pollution permits to achieve this goal. Which of the following is a likely auction price for the permits? a.$69b.$97c.$81d. 583

The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from
their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A
to eliminate a second unit of pollution it would cost an additional $67.
Firm
O a. $69
O
b. $97
O c. $81
O d. $83
A
B
C
D
Marginal Cost to Eliminate
(Dollars)
First Unit Second Unit Third Unit Fourth Unit
54
57
54
62
67
68
66
73
82
86
82
91
107
108
107
111
Refer to Table 10-5. Suppose the government wants to reduce pollution from 16 units to 8 units and auctions off 8
pollution permits to achieve this goal. Which of the following is a likely auction price of the permits?

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