Marginal Cost to Eliminate (Dollars) Firm First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 B 57 68 86 108 C 54 66 82 107 D 62 73 91 111 The 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 f the government wanted to reduce pollution from 16 units to exactly 6 units, which of the following fees per unit of pollution would achieve that goal? O 70 O 85 O 87 O 80

Marginal Cost to Eliminate (Dollars) Firm First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 B 57 68 86 108 C 54 66 82 107 D 62 73 91 111 The 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 f the government wanted to reduce pollution from 16 units to exactly 6 units, which of the following fees per unit of pollution would achieve that goal? O 70 O 85 O 87 O 80

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 10PA

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stion 10 « < Questi 4 points Marginal Cost to Eliminate (Dollars) Firm First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 57 68 86 108 54 66 82 107 D 62 73 91 111 The 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 If the government wanted to reduce pollution from 16 units to exactly 8 units, which of the following fees per unit of pollution would achieve that goal? 70 O 85 O 87 O 80
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Use this prompt to answer the following questions about tradeable permits. Two firms each currently dump 20 tons of pollution a piece into a local river. The government wants to reduce the amount of pollution in the river so they issue 5 permits to each firm. The cost for firm A to reduce their pollution by 1 ton is $1000 and the cost for firm B to reduce their pollution by 1 ton is $800. When answering the questions below simply enter the number for your answer do not write a full sentence. Question 1 If trade is NOT allowed what will be the cost of reducing pollution will be for firm A, for firm B, and in total. 3 pts
A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. The table below shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Emissions Total Cost Marginal Cost Total Benefit Marginal Benefit 16 MG Current N/A Current N/A 12 MG 50 800 8 MG 150 1300 4 MG 500 1650 0 MG 1200 1950 Complete the table. What is the optimal level of sewage for this city? How can you tell?
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EOC 11.04 Two businesses, X and Y, each dump 20 tonnes of pollution into a creek. In an effort to reduce pollution, the government will now require businesses to have a pollution permit to dump pollutants in the creek. Each business receives 10 pollution permits and they can use it to pollute or sell it to the other business (but lose the ability to pollute). To reduce pollution it costs business X $100 per tonne of pollutant eliminated and it costs business Y $50 per tonne of pollutant eliminated. Once the two businesses have traded these permits with each other, what is the likely outcome? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a business X emits 10 tonnes of pollutants and business Y emits 10 tonnes of pollutants. b business X no longer pollutes, and business Y will not lower the amount it pollutes. business X raises its pollution, and business Y will lower how much it pollutes. business Y no longer pollutes, and…
Table 10-5 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. Marginal Cost to Eliminate Firm (Dollars) First Unit Second Unit Third Unit Fourth Unit 54 67 82 107 57 68 86 108 54 66 82 107 D 62 73 91 11 Refer to Table 10-5. If the government wanted to eliminate exactly 7 units of pollution, which of the following fees per unit of pollution would achieve that goal? S85 $87 er $71 $74 AB
Table 10-5 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. Marginal Cost to Eliminate Firm (Dollars) First Unit Second Unit Third Unit Fourth Unit 54 67 82 107 57 68 86 108 54 66 82 107 D 62 73 91 111 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? S69 wered $85 swer $79 $87 ABC
Firm A currently dumps 223 tons of chemicals into the local river. Firm B currently dumps 192 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 10 pollution permits. The abatement costs of one ton of pollution is $173 for Firm A and $76 for Firm B. What would be the total cost of reducing pollution, if the firms are allowed to trade permits between each other?
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Firm A currently dumps 243 tons of chemicals into the local river. Firm B currently dumps 126 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives Firm A 61 pollution permits and gives Firm B 65 pollution permits. The abatement costs of one ton of pollution is $113 for Firm A and $165 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?