The graph illustrates the unregulated market for uranium. When the mines produce uranium, they also create waste which they dump into a river that runs through a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing uranium (that is, the marginal social cost of producing the uranium is double the marginal private cost). If no one owns the river and the government levies a pollution tax, what is the tax per ton of uranium that achieves the efficient outcome? CIB Draw a point to show marginal social cost if production is 240 tons. Draw the MSC curve and label it. Draw an arrow at the efficient quantity that shows the marginal external cost. The tax per ton of uranium that achieves the efficient outcome is $ 2160 1920- 1680- 1440 1200- 960- Price and cost (dollars per ton) 720- 480- 240- 04 0 60 120 180 Quantity (tons per week) >>> Draw only the objects specified in the question. 240 S D 300

The graph illustrates the unregulated market for uranium. When the mines produce uranium, they also create waste which they dump into a river that runs through a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing uranium (that is, the marginal social cost of producing the uranium is double the marginal private cost). If no one owns the river and the government levies a pollution tax, what is the tax per ton of uranium that achieves the efficient outcome? CIB Draw a point to show marginal social cost if production is 240 tons. Draw the MSC curve and label it. Draw an arrow at the efficient quantity that shows the marginal external cost. The tax per ton of uranium that achieves the efficient outcome is $ 2160 1920- 1680- 1440 1200- 960- Price and cost (dollars per ton) 720- 480- 240- 04 0 60 120 180 Quantity (tons per week) >>> Draw only the objects specified in the question. 240 S D 300

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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