(a)To draw the marginal benefit curves for two plants A and B where Marginal benefit of A is less than plant marginal benefit of B and both emit same level of pollution without government intervention. (b) Do you expect the total quantity of pollution was more or less than optimal level of pollution before the program was implemented? Explain (c) If the plants are participant of 33/50 program then mark target level of pollution in 1995 for both? Which was required to emit less and is this solution efficient? (d) What are the other policies resembling to 33/50 program? what are the shortcomings Concept: Marginal benefit: The additional utility that a person receives after consuming additional unit of a good. Optimal level of pollution: The level at which cost of reducing pollution is less than benefit of reducing pollution

Question

Want to see the full answer?

Answer 1

Question

Chapter 16, Problem 3P

To determine

(a)To draw the marginal benefit curves for two plants A and B where Marginal benefit of A is less than plant marginal benefit of B and both emit same level of pollution without government intervention.

(b) Do you expect the total quantity of pollution was more or less than optimal level of pollution before the program was implemented? Explain

(c) If the plants are participant of 33/50 program then mark target level of pollution in 1995 for both? Which was required to emit less and is this solution efficient?

(d) What are the other policies resembling to 33/50 program? what are the shortcomings

Concept:

Marginal benefit: The additional utility that a person receives after consuming additional unit of a good.

Optimal level of pollution: The level at which cost of reducing pollution is less than benefit of reducing pollution

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Johnny brought $39.50 to the art supply store. He bought a brush, a sketchbook, and a paint set. The brush was 1 6 as much as the sketchbook, and the sketchbook cost 3 4 the cost of the paint set. Johnny had $2.00 left over after buying these items.

A young woman plans to retire early in 25 years. She believes she can save $10,000 each year starting now. If she plans to begin withdrawing money one year after she makes her last payment into the retirement account (i.e., in the 26th year), what uniform amount could she withdraw each year for 30 years, if the account earns an interest rate of 8% per year? a) Correctly plot the cash flow diagram with its respective vectors, arrowheads, units, and currency values. b) Correct mathematical approach and development, use of compound interest factors.c) Financial logic in the development of the exercise and application of the concept of time value of money. d) Final numerical answer and writing in prose with a minimum of 20 words and a maximum of 50 words of the obtained numerical interpretation.

A hospital charges $200 for a medical procedure, and 1,000 patients use the service. The hospital raises the price to $250, and the number of patients drops to 900. Calculate the price elasticity of demand (PED) and explain your answer. (show all working) Briefly explain how elasticity affects government health policies in the following cases: • Taxes on unhealthy products (cigarettes, alcohol, sugary drinks) • Subsidizing Preventive Care (e.g., vaccines, screenings) Drug Price Controls & Generic Substitutions Co-Payments & Insurance Design