Two types of consumers (workers and retirees) share a community with a polluting cheese factory. The pollution is nonrival and nonexcludable. The total damage to workers is p² where p is the amount of pollution and the total damage to retirees is 3p². Thus marginal damage to workers is 2p and marginal damage to retirees is 6p. According to an analysis by consulting engineers, the cheese factory saves 20p - p² by polluting p, for a marginal savings of 20 - 2p. a. Find the aggregate (including both types of consumers) marginal damage for the public bad. b. Graph the marginal savings and aggregate marginal damage curves with pollu- tion on the horizontal axis. C. How much will the cheese factory pollute in the absence of any regulation or bargaining? What is this society's optimal level of pollution?

Two types of consumers (workers and retirees) share a community with a polluting cheese factory. The pollution is nonrival and nonexcludable. The total damage to workers is p² where p is the amount of pollution and the total damage to retirees is 3p². Thus marginal damage to workers is 2p and marginal damage to retirees is 6p. According to an analysis by consulting engineers, the cheese factory saves 20p - p² by polluting p, for a marginal savings of 20 - 2p. a. Find the aggregate (including both types of consumers) marginal damage for the public bad. b. Graph the marginal savings and aggregate marginal damage curves with pollu- tion on the horizontal axis. C. How much will the cheese factory pollute in the absence of any regulation or bargaining? What is this society's optimal level of pollution?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: I need help in solving this question because I'm not sure it's right?

A: The United State federal government passed the American Recovery and Reinvestment Act in 2009 was to…

Q: three types of business activities? Distinguish one from the other

A: Business activity can be considered as an economic activity and a profession at the same time.…

Q: Do you have any references or sources for this information

A: In an error correction model (ECM) expectations about future economic conditions can influence the…

Q: An agricultural seed company has an inverse demand given by: P = 120 - 2Q, and a cost function given…

A: Note : In case of multiple questions , we answer only the first question. The answer to your first…

Q: i need g to h

A: Thank you for the question. As per Bartleby's answering guidelines, we answer 3 subparts per…

Q: In a company, who gets to determine when and how data should be used?

A: Data refers to individual facts, figures, or bits of information that are often quantitative. A…

Q: Can someone answer more of the questions?

A: Disclaimer- “Since you have asked multiple question, we will solve the last three question of 1st…

Q: Could you please write it in paragraph form instead of bullet points?

A: An economic recession is a prolonged period of fall in economic activity that often lasts longer…

Q: definition of products, goods and services

A: TO understand the definition of these terms, we need to understand that goods and products are used…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: the quantity of a good or service which consumers want and have the ability to purchase

A: Quantity- It is the number or amount of goods or services.

Q: Let’s say that you need a car. How would you go about deciding which car to buy?

A: The mechanism by which a person or a company decides the course of action to take is referred to as…

Q: What is size maximizing bureaucrat

A: The economies around the globe work with the major motive to increase their production, and…

Q: What is the sequence of events in a literary work?

A: Being able to be able to identify the event components like the beginning, middle, and end is known…

Q: What is the matter economic

A: Discussing the "matter" of economics involves exploring its fundamental components and core…

Q: Why it is essential to focus on the customer when planning sales calls?

A: Sales call refers to the situation where the sales person is meeting with the potential customer…

Q: could you type ur answer i can't read ur handwr

A: The break even point is where the annual savings from the Solar Panel affect the initial investment.…

Q: could you also help with question g ?

A: Ariel's opportunity cost for 1 book 2/3=0.67 problem set.So Ariel will accept price when her…

Q: i need help with all of them

A: The government uses price controls to exert direct influence over market prices. It has an impact on…

Q: HOW TO DRAW A TABLE FORM

A: There are 4 possible ways in which the other player can act :- 1) always choose ‘C’ 2) He will…

Q: The Process of Communication Essay

A: Communication is the process of bringing individuals together in order to organise them around a…

Q: ings that Mark Louis provided to you during an online presentation.

A: 1. Leverage your voice Whenever you eliminate the actual point from your show, your voice…

Q: Why do we use mind mapping

A: Mind mapping is the diagrammatic representation of information, task or concepts.

Q: Can u explain the question little in details please?

A: A joint-stock company is a kind of corporation where shareholders may buy and sell shares of the…

Q: Definition of want

A: Economics is the study of efficient allocation of resources. The resources in the economy are…

Q: write a essay on pros and cons of studying at home.

A: Studying at home can be both beneficial as well as problematic. For self studying, staying at home…

Q: Consumers exercise self interest when

A: Any person or group of persons who buy or utilize products or services only for their own…

Q: What important informations are required in evaluations?

A: Evaluation can be understood as a systematic and objective assessment of an ongoing or completed…

Q: The option or alternatives from which decision are made

A: Alternatives ought to reflect generously various ways to deal with the issue or various needs across…

Q: The process of developing a service plan

A: A service plan is a comprehensive approach that businesses use to manage client interactions. An…

Question

please help me with this question

you
5. Two types of consumers (workers and retirees) share a community with a polluting
cheese factory. The pollution is nonrival and nonexcludable. The total damage to
workers is p² where p is the amount of pollution and the total damage to retirees is
3p². Thus marginal damage to workers is 2p and marginal damage to retirees is 6p.
According to an analysis by consulting engineers, the cheese factory saves 20p - p²
by polluting p, for a marginal savings of 20 - 2p.
a.
TAT
Find the aggregate (including both types of consumers) marginal damage for the
public bad.
b. Graph the marginal savings and aggregate marginal damage curves with pollu-
tion on the horizontal axis.
C.
How much will the cheese factory pollute in the absence of any regulation or
bargaining? What is this society's optimal level of pollution?
d. Starting from the uncontrolled level of pollution calculated in part (c), find the
marginal willingness to pay for pollution abatement, A, for each consumer class.
(Abatement is reduction is pollution; zero abatement would be associated with
the uncontrolled level of pollution.) Find the aggregate marginal willingness to
pay for abatement.
e. Again starting from the uncontrolled level of pollution, what is the firm's mar-
ginal cost of pollution abatement? What is the optimal level of A?
f.
Are the problems of optimal provision of the public bad (pollution) and the pub-
lic good (abatement) equivalent? Explain why or why not.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: State the given information

VIEW

Step 2: a) Find the Aggregate Marginal Damage

VIEW

Step 3: b) Graph the marginal savings and aggregate marginal damage curves

VIEW

Step 4: c) Determine the level of pollution to be made by cheese factory & society's optimal level

VIEW

Step 5: d) Find the aggregate marginal willingness to pay for abatement

VIEW

Step 6: e) Find the firm's marginal cost of pollution abatement

VIEW

Step 7: f) Explain the Equivalence of Problems of Optimal Provision of Public Bad and Public Good

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 8 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Not all of the questions were answered I was wondering if the rest could be answered for me.
Outline and explain the guidelines for ensuring e-invitations are successful.
Express your thoughts/ideas regarding the given topic "My home."
What is a literature review?
You have decided to open a small business in Country Y and you want to hire some employees for your business. Discuss in detail about the rationing device you will use when hiring employees. Please read step by step and answer Thank you.
what is the most important concept in satisfying needs and wants
Has your educational experience in the U.S. prepared you for success in academics? What about preparing you for success in life?
Where are you getting the number 11?
Are you able to assist me with the last two questions?
do it with pencil and paper
Imagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks show. Your staff survey your 400 citizens who say that they each value a fireworks show at $10. The fireworks show only costs $3,000 so you put on the show but when you ask for donations to pay for the fireworks you only receive $25 total. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. You staff's survey must have overestimated the value of a fireworks show. b The fireworks cost must have been greater than their economic benefit. The firework show suffered from the Tragedy of the Commons problems d The town's citizens were free-riders.
What is good and services