Suppose that a firm producing copper is dumping mine tailings into the river. Assume that the price of the product represents both its private and social benefit to society. The firm incurs costs listed below under MCp for each additional ton of copper produced. The mine tailings, though, lower the dissolved oxygen levels in the river resulting in fewer fish. Given fewer fish, the local people downstream must fish longer hours. For each additional ton of copper produced, this added cost to the local people is represented by MC. These costs are represented below. MCP MCE 1 $30 $10 $4 $30 $18 $6 3 $30 $25 $8 $30 $31 $10 $30 $45 $12 What will be the market level of output (tons)? 2.

Suppose that a firm producing copper is dumping mine tailings into the river. Assume that the price of the product represents both its private and social benefit to society. The firm incurs costs listed below under MCp for each additional ton of copper produced. The mine tailings, though, lower the dissolved oxygen levels in the river resulting in fewer fish. Given fewer fish, the local people downstream must fish longer hours. For each additional ton of copper produced, this added cost to the local people is represented by MC. These costs are represented below. MCP MCE 1 $30 $10 $4 $30 $18 $6 3 $30 $25 $8 $30 $31 $10 $30 $45 $12 What will be the market level of output (tons)? 2.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 7SQ

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