MARGINAL ANALYSIS. This example problem goes over the degree of comfort experienced at different levels of clean air. The different dollar value amounts are shown for every 10% increase in clean air. We want to find the optimum amount of clean air that we should have in this area, and it is important to remember that there is an optimal amount of pollution. Having 100% clean air is probably never going to be the solution. As we would expect, the more clean air we have in our economy, the higher the benefit we receive (we prefer clean air over dirty air). However, as we produce (or clean) more of the clean air we also incur a cost. As more clean air is present, the higher our costs. Note that benefits here is the same as utility, % of Clean Air Total Benefits Total Cost 0% 10% 50 45 20% 130 50 30% 205 58 40% 269 68 50% 319 81 60% 351 96 70% 371 115 80% 386 150 90% 398 200 280 100% Find the MC and MB. At what % of Clean Air do we have the best option to be adopted? 406 a) 20% b) 30% c) 60% d) 90%
MARGINAL ANALYSIS. This example problem goes over the degree of comfort experienced at different levels of clean air. The different dollar value amounts are shown for every 10% increase in clean air. We want to find the optimum amount of clean air that we should have in this area, and it is important to remember that there is an optimal amount of pollution. Having 100% clean air is probably never going to be the solution. As we would expect, the more clean air we have in our economy, the higher the benefit we receive (we prefer clean air over dirty air). However, as we produce (or clean) more of the clean air we also incur a cost. As more clean air is present, the higher our costs. Note that benefits here is the same as utility, % of Clean Air Total Benefits Total Cost 0% 10% 50 45 20% 130 50 30% 205 58 40% 269 68 50% 319 81 60% 351 96 70% 371 115 80% 386 150 90% 398 200 280 100% Find the MC and MB. At what % of Clean Air do we have the best option to be adopted? 406 a) 20% b) 30% c) 60% d) 90%
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
Related questions
Question
![MARGINAL ANALYSIS. This example problem goes over the degree of comfort
experienced at different levels of clean air. The different dollar value amounts are
shown for every 10% increase in clean air. We want to find the optimum amount of
clean air that we should have in this area, and it is important to remember that
there is an optimal amount of pollution. Having 100% clean air is probably never
going to be the solution.
As we would expect, the more clean air we have in our economy, the higher the
benefit we receive (we prefer clean air over dirty air). However, as we produce (or
clean) more of the clean air we also incur a cost. As more clean air is present, the
higher our costs. Note that benefits here is the same as utility,
% of Clean Air| Total Benefits
Total Cost
0%
50
45
10%
20%
130
50
30%
205
58
40%
269
68
50%
319
81
60%
351
96
70%
371
115
80%
386
150
90%
398
200
100%
406
280
Find the MC and MB. At what % of Clean Air do we have the best option to be
adopted?
a) 20%
b) 30%
c) 60%
d) 90%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6436c8f-1e9a-40ab-9147-e10f56b3c852%2F220b3bd8-908a-4514-84cc-70facba432d7%2Fq55oz7j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MARGINAL ANALYSIS. This example problem goes over the degree of comfort
experienced at different levels of clean air. The different dollar value amounts are
shown for every 10% increase in clean air. We want to find the optimum amount of
clean air that we should have in this area, and it is important to remember that
there is an optimal amount of pollution. Having 100% clean air is probably never
going to be the solution.
As we would expect, the more clean air we have in our economy, the higher the
benefit we receive (we prefer clean air over dirty air). However, as we produce (or
clean) more of the clean air we also incur a cost. As more clean air is present, the
higher our costs. Note that benefits here is the same as utility,
% of Clean Air| Total Benefits
Total Cost
0%
50
45
10%
20%
130
50
30%
205
58
40%
269
68
50%
319
81
60%
351
96
70%
371
115
80%
386
150
90%
398
200
100%
406
280
Find the MC and MB. At what % of Clean Air do we have the best option to be
adopted?
a) 20%
b) 30%
c) 60%
d) 90%
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