Suppose the marginal benefit (MB) and marginal cost (MC) curves for emitting particulate matter are given by the following schedules, where E is the quantity of emissions per period. The marginal benefits and costs are measured at the quantities of emissions shown. E/Period MB ($ MC ($) 0 230 0 200 190 10 400 150 30 600 110 50 800 70 70 1000 30 90 Use the information above to calculate the tax rate that would achieve the efficient rate of emissions. Efficient Tax Rate =$__ per unit of pollution
Suppose the marginal benefit (MB) and marginal cost (MC) curves for emitting particulate matter are given by the following schedules, where E is the quantity of emissions per period. The marginal benefits and costs are measured at the quantities of emissions shown. E/Period MB ($ MC ($) 0 230 0 200 190 10 400 150 30 600 110 50 800 70 70 1000 30 90 Use the information above to calculate the tax rate that would achieve the efficient rate of emissions. Efficient Tax Rate =$__ per unit of pollution
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the marginal benefit (MB) and marginal cost (MC)
E/Period | MB ($ | MC ($) |
0 | 230 | 0 |
200 | 190 | 10 |
400 | 150 | 30 |
600 | 110 | 50 |
800 | 70 | 70 |
1000 | 30 | 90 |
Use the information above to calculate the tax rate that would achieve the efficient rate of emissions.
Efficient Tax Rate =$__ per unit of pollution
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