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If the reduction of sulfur dioxide is increased from 7.0 million to 8.5 million tons, the total benefit of this change is equal to and the total cost of this change is equal to OA. $375 million; $255 million B. $120 million; $375 million OC. $255 million; $120 million OD. $120 million; $255 million G Cost or benefit (dollars per ton) $300- 200- 140- Marginal c of reducing pollution Marginal ber from reducir pollution 7.0 8.5 Reduction in sulfur dioxide emissions (millions

If the reduction of sulfur dioxide is increased from 7.0 million to 8.5 million tons, the total benefit of this change is equal to and the total cost of this change is equal to OA. $375 million; $255 million B. $120 million; $375 million OC. $255 million; $120 million OD. $120 million; $255 million G Cost or benefit (dollars per ton) $300- 200- 140- Marginal c of reducing pollution Marginal ber from reducir pollution 7.0 8.5 Reduction in sulfur dioxide emissions (millions

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Transcription:** --- **Question:** If the reduction of sulfur dioxide is increased from 7.0 million to 8.5 million tons, the total benefit of this change is equal to _________ and the total cost of this change is equal to _________. - **A.** $375 million; $255 million - **B.** $120 million; $375 million - **C.** $255 million; $120 million - **D.** $120 million; $255 million --- **Graph Explanation:** The graph illustrates the relationship between the reduction in sulfur dioxide emissions (in millions) and the cost or benefit (in dollars per ton). The x-axis represents the reduction in sulfur dioxide emissions, ranging from 7.0 million to 8.5 million tons. The y-axis represents the cost or benefit in dollars per ton, with key values marked at 140, 200, and 300 dollars. Two lines intersect the graph: 1. **Marginal cost of reducing pollution** (brown line): Upward sloping, indicating that costs increase as more sulfur dioxide is reduced. 2. **Marginal benefit from reducing pollution** (blue line): Downward sloping, indicating that benefits decrease as more sulfur dioxide is reduced. The shaded area between 7.0 million and 8.5 million tons has two sections: - **Area A**: Represents the benefits of increasing reduction from 7.0 to 8.5 million tons at a higher benefit level (e.g., approximately $300 to $200 per ton). - **Area B**: Represents the additional costs incurred from the same increase in reduction, spanning a lower cost range (e.g., approximately $140 to $200 per ton). This graph is used to assess cost-benefit analysis concerning environmental policy decisions.
Transcribed Image Text:**Transcription:** --- **Question:** If the reduction of sulfur dioxide is increased from 7.0 million to 8.5 million tons, the total benefit of this change is equal to _________ and the total cost of this change is equal to _________. - **A.** $375 million; $255 million - **B.** $120 million; $375 million - **C.** $255 million; $120 million - **D.** $120 million; $255 million --- **Graph Explanation:** The graph illustrates the relationship between the reduction in sulfur dioxide emissions (in millions) and the cost or benefit (in dollars per ton). The x-axis represents the reduction in sulfur dioxide emissions, ranging from 7.0 million to 8.5 million tons. The y-axis represents the cost or benefit in dollars per ton, with key values marked at 140, 200, and 300 dollars. Two lines intersect the graph: 1. **Marginal cost of reducing pollution** (brown line): Upward sloping, indicating that costs increase as more sulfur dioxide is reduced. 2. **Marginal benefit from reducing pollution** (blue line): Downward sloping, indicating that benefits decrease as more sulfur dioxide is reduced. The shaded area between 7.0 million and 8.5 million tons has two sections: - **Area A**: Represents the benefits of increasing reduction from 7.0 to 8.5 million tons at a higher benefit level (e.g., approximately $300 to $200 per ton). - **Area B**: Represents the additional costs incurred from the same increase in reduction, spanning a lower cost range (e.g., approximately $140 to $200 per ton). This graph is used to assess cost-benefit analysis concerning environmental policy decisions.
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