The table below gives the marginal abatement costs of three polluting firms inan industry. The industry is regulated with an emission tax of $6.Marginal abatements costs ($/ton)Emissions(tons/week)10Firm 1 Firm 2 Firm 30 02342123184.51024412366.3146018728.23842910810a. What level of emissions does each firm choose? Explain how they respond to the emissionstax.b. What are cach firm's total compliance costs? Show your work.c. What is the total level of abatement? Discuss whether this abatement is achieved at the leastcost for society.

Abatement or Reduction costs are costs of reducing environmental harm such as pollution. Marginal or…

The table below gives the marginal abatement costs of three polluting firms in an industry. The industry is regulated with an emission tax of $6. Marginal abatements costs ($/ton) Emissions (tons/week) Firm I Firm 2 Fim 3 0 00 10 9. 3 8. 4 6. 2 6 12 3 8. 18 4 10 24 12 36 3 14 60 7 2 18 72 8. 23 84

The table below gives the marginal abatement costs of three polluting firms in an industry. The industry is regulated with an emission tax of $6. Marginal abatements costs ($/ton) Emissions (tons/week) Firm I Firm 2 Fim 3 0 00 10 9. 3 8. 4 6. 2 6 12 3 8. 18 4 10 24 12 36 3 14 60 7 2 18 72 8. 23 84

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 41P: Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once...

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Is zero pollution possible under a marketable permits system? Why or why not?
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
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What should the government set their corrective tax to if they want to eliminate 7 units of pollution?
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