(Table: City Sanitation in Winnetka) Use Table: City Sanitation in Winnetka. Suppose that the marginal cost of each street cleaning is $6. How many street cleanings will there be? Table: City Sanitation in Winnetka Number of Street Cleanings o 1 2 3 4 5 Edwin's Total Benefit Geraldine's Total Benefit $0 10 18 24 28 30 $0 8 15 21 26 30

(Table: City Sanitation in Winnetka) Use Table: City Sanitation in Winnetka. Suppose that the marginal cost of each street cleaning is $6. How many street cleanings will there be? Table: City Sanitation in Winnetka Number of Street Cleanings o 1 2 3 4 5 Edwin's Total Benefit Geraldine's Total Benefit $0 10 18 24 28 30 $0 8 15 21 26 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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43. A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. TC TB 16 MG Current Current 12 MG 50 800 8 MG 150 1300 4 MG 500 1850 O MG 1200 2000 Table 12.13 a. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. b. What is the optimal level of sewage for this city? How can you tell?
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9. Consider the following hypothetical three-stage screening test for a cancer with the following rates of detection and costs: Stage 2 3 Number of Cases Detected 100 110 125 135 Total $150,000 $180,000 $250.000 $310.000 A. Calculate the average cost per cancer detected in the three stages. B. Calculate the marginal cost per cancer detected in the three stages. C. Suppose that the marginal benefit per treated case is $4,600 per person. What would be the optimal screening, given the costs?
(Figure: The Socially Optimal Quantity of Emissions from Coal Production) Use Figure The Socialy Optimal Quarety of Emissions from Coal Production in the figure, firms are the only beneficiaries of polution, and costs are borne solely by others in the society. Without government intervention Marginal social cost, marginal social benefit MSC of pollution MSB of pollution Quantity of pollution emissions (tons) O The outcome cannot be determined without more information Orms will continue to polute until the marginal benefit to them is $200 O firms will continue to pollute until the marginal benate to them is zero. O the quantity of pollution will be optimal.
8. Stody Questions and Problems #8 California once proposed legislation that would have required 10% of its car fleet to be nearly emissions-free by the year 2003. This mandate spurred electric vehicle research. Such vehicles could be powered by photovoltaic cells or by batteries that are recharged using an electrical outlet. True or False: Electric vehicles that use electrical outlets are not emissions-free because electric production requires coal, nuclear, or hydroelectric plants, none of which are pollution-free. O True False Electric vehicles that are powered by photovoltaic cells pollution. emissions-free because the manufacturing of PVCs
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