Refer to following table, if the group living in the house consists of Students A, B, and C, the socially optimal level of CO concentrations is Table. Individual Demand for Lowering Indoor Carbon Monoxide in $/yr. Three Students Share a Home. MWTP is marginal willingness to pay. Student A MWTP 45 50 ppm 60 ppm 70 ppm 80 ppm 90 ppm Student B MWTP 0 Student C MWTP 5 Marginal Cost of Cleanup O 70 ppm O 80 ppm O $70/yr O 50ppm 240 55 0 10 150 70 10 15 95 85 35 20 65 110 60 30 50

Refer to following table, if the group living in the house consists of Students A, B, and C, the socially optimal level of CO concentrations is Table. Individual Demand for Lowering Indoor Carbon Monoxide in $/yr. Three Students Share a Home. MWTP is marginal willingness to pay. Student A MWTP 45 50 ppm 60 ppm 70 ppm 80 ppm 90 ppm Student B MWTP 0 Student C MWTP 5 Marginal Cost of Cleanup O 70 ppm O 80 ppm O $70/yr O 50ppm 240 55 0 10 150 70 10 15 95 85 35 20 65 110 60 30 50

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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