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 MCE. These costs are represented below. P. MCp MCE 1 $30 $10 $4 $30 $18 $6 3 $30 $25 $8 $30 $31 $10 $30 $45 $12 What will be the socially efficient level output (tons)? 4.
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 MCE. These costs are represented below. P. MCp MCE 1 $30 $10 $4 $30 $18 $6 3 $30 $25 $8 $30 $31 $10 $30 $45 $12 What will be the socially efficient level output (tons)? 4.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 MCE. These costs are represented
below.
P
MCp MCE
1
$30
$10
$4
$30
$18
$6
$30
$25
$8
$30
$31
$10
$30
$45 $12
What will be the socially efficient level output (tons)?
2)
4.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F078385e6-886d-4b29-81f8-fdda02a85229%2Ff1327d19-cebb-4215-82b3-70a5c570584d%2Fo3stz7r_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 MCE. These costs are represented
below.
P
MCp MCE
1
$30
$10
$4
$30
$18
$6
$30
$25
$8
$30
$31
$10
$30
$45 $12
What will be the socially efficient level output (tons)?
2)
4.
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