ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Textbook Question
Chapter 17, Problem 6P
(External Costs with Variable Technology) Think of an industry that pollutes the water and has access to variable technology for reducing that pollution. Graphically illustrate and explain the impact of each of the following, other things constant, on the optimal level of water quality:
a. New evidence is discovered about a greater risk of cancer from water pollution.
b. The cost of pollution-control equipment increases.
c. A technological improvement reduces the cost of pollution control.
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(Figure: Toxic Waste) From the graph, external cost per ton of toxic waste would be
Price ($ per ton)
2222288822
200
180
160
140
120
100
8 80
80
40
20
0
$60.
$70.
$80.
$90.
10 20 30
0
40 50 GO 70 80 90 100 110 120
Quantity (tons of toxic waste)
(Table: City Sanitation in Winnetka) Use Table: City Sanitation in Winnetka. Suppose that the marginal cost of each street
cleaning is $6. How many street cleanings will there be?
Table: City Sanitation in Winnetka
Number of Street
Cleanings
10
1
2
3
14
QUESTION 29
5
05
03
2
Edwin's Total Benefit Geraldine's Total
Benefit
$0
10
18
24
28
30
$0
18
15
21
26
30
Question 26
Consider two ways to reduce pollution--establishment of taxes on the pollution or the sale of permits to polluters. Which of the following best describes the outcome?
a
Both methods can result in the same reduction of pollution, but the permits may achieve that goal with lower administrative costs.
b
Both methods can result in the same reduction of pollution, but the permits may achieve that goal with higher administrative costs.
c
The permits will allow more pollution, but both methods will have the same administrative costs.
d
Both methods can result in the same reduction of pollution and the same adminstrative costs.
Chapter 17 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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- Please don't provide answer in image format thank youarrow_forward5. Productivity declines from environmental regulation a) might occur if firms divert capital from spending on new plant and equipment to comply with regulations. b) have been ruled out by economic studies. c) for well over half of the productivity declines of the 1970s. d) might occur if firms invest in new capital sooner than they otherwise would to comply with regulations. e) have cost large numbers of jobs in manufacturing. 6. Consider the diagram, what is the efficient level of pollution cleanup? Total Benefits of $100 Cleanup $75 $50 Total Costs of $25 Cleanup $0 2. Polution Cleanup (tona)arrow_forward(Table: City Sanitation in Winnetka) Use Table: City Sanitation in Winnetka. Suppose that the marginal cost of each street cleaning is $6. How many street cleanings will there be? Table: City Sanitation in Winnetka Number of Street Cleanings 0 1 2 2 03 04 O 5 Edwin's Total Benefit $0 10 18 24 28 30 Geraldine's Total Benefit $0 8 15 21 26 30arrow_forward
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