a.
The implicit cost of a ton of greenhouse gas.
a.
Explanation of Solution
The reduced greehouse gases per year can be calculated as follows.
The reduced greehouse gases per year is 3,100,000.
The implicit cost of a ton of greenhouse gas can be calculated as follows.
The implicit cost of greenhouse gas per year is $387.10 per ton.
b.
The cost to reduce the total emission by 3% over next five years.
b.
Explanation of Solution
The reduced greehouse gases per year can be calculated as follows.
The reduced greehouse gases per year is 90,000,000.
The cost to reduce the total emission can be calculated as follows.
The cost to reduce the total emission by 3% over next five years is $340,870,000,000.
Want to see more full solutions like this?
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education