Please, Provide an Explanation for the Ranges/Point in the Follow (Encircled Below in Red. What Do the Ranges/Point Refer To & H They Calculated?) With Z representing the Level of Mitigation (Z): Marshland, MB = 3-Z Dampland, MB=4-2Z Wetland, MB 11-Z = The Marginal Cost of Flood Mitigation (MC): MC=2+12Z a. What is the Socially Optimal Level of Z(Zopt)? Answer: From 0-2 MSB = [(3- Z) + (4-2Z) + (11 - Z)] = [(3+ 4+ 11)-(Z+2Z+Z)] = 18-4Z From 2-3 MSB = (3- Z) + (11 - Z) = [(3+11)-(Z+Z)] = 14-2Z From 3-10-MSB = 11 - Z @11MSB=0
Please, Provide an Explanation for the Ranges/Point in the Follow (Encircled Below in Red. What Do the Ranges/Point Refer To & H They Calculated?) With Z representing the Level of Mitigation (Z): Marshland, MB = 3-Z Dampland, MB=4-2Z Wetland, MB 11-Z = The Marginal Cost of Flood Mitigation (MC): MC=2+12Z a. What is the Socially Optimal Level of Z(Zopt)? Answer: From 0-2 MSB = [(3- Z) + (4-2Z) + (11 - Z)] = [(3+ 4+ 11)-(Z+2Z+Z)] = 18-4Z From 2-3 MSB = (3- Z) + (11 - Z) = [(3+11)-(Z+Z)] = 14-2Z From 3-10-MSB = 11 - Z @11MSB=0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Please, Provide an Explanation for the Ranges/Point in the Follow
(Encircled Below in Red. What Do the Ranges/Point Refer To & H
They Calculated?)
With Z representing the Level of Mitigation (Z):
Marshland, MB = 3-Z
Dampland, MB=4-2Z
Wetland, MB 11-Z
The Marginal Cost of Flood Mitigation (MC):
MC=2+12Z
a. What is the Socially Optimal Level of Z(Zopt)?
Answer:
From 0-2 MSB = [(3- Z)+(4- 2Z) + (11- Z)]
= [(3+ 4+ 11)-(Z+2Z+Z)]
= 18-4Z
From 2-3 MSB=(3- Z) + (11- Z)
= [(3 + 11)-(Z+Z)]
= 14-2Z
From 3-10-MSB = 11 - Z
@11MSB=0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2Fe7b1355b-42fc-4faa-9713-b7d3b87f1eb8%2Fy1k8nbm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please, Provide an Explanation for the Ranges/Point in the Follow
(Encircled Below in Red. What Do the Ranges/Point Refer To & H
They Calculated?)
With Z representing the Level of Mitigation (Z):
Marshland, MB = 3-Z
Dampland, MB=4-2Z
Wetland, MB 11-Z
The Marginal Cost of Flood Mitigation (MC):
MC=2+12Z
a. What is the Socially Optimal Level of Z(Zopt)?
Answer:
From 0-2 MSB = [(3- Z)+(4- 2Z) + (11- Z)]
= [(3+ 4+ 11)-(Z+2Z+Z)]
= 18-4Z
From 2-3 MSB=(3- Z) + (11- Z)
= [(3 + 11)-(Z+Z)]
= 14-2Z
From 3-10-MSB = 11 - Z
@11MSB=0
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