MAC of reducing SO2 emissionTons of SO2Firm 1Firm 2Firm 31st322nd1264Зrd1896.4th241285th3015106th361812The table shows the marginal abatement costs of reducing SO2 pollution. Each firm is emitting 6 tons of SO2 into the aircurrently.QUESTION 3Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost ofreducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax ofO 13O 4O 78

The marginal abatement cost helps in measuring the cost of reduction of one more unit of pollution.…

Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of O 13 O 4 O 8

Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of O 13 O 4 O 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

MAC of reducing SO2 emission
Tons of SO2
Firm 1
Firm 2
Firm 3
1st
3
2
2nd
12
6
4
Зrd
18
9
6.
4th
24
12
8
5th
30
15
10
6th
36
18
12
The table shows the marginal abatement costs of reducing SO2 pollution. Each firm is emitting 6 tons of SO2 into the air
currently.
QUESTION 3
Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of
reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of
O 13
O 4
O 7
8

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