Question

04. Figure 6.1 shows the chemical emissions from a fertilizer plant and the marginal cost of abatement. According to the diagram, what is the cheapest method of pollution abatement? a) Cleaning equipment b) Clean packaging c) Chemical washing d) Reformulate Usually, as the level of pollution increases a) Marginal external cost increases. b) The firm's marginal cost of pollution abatement increases. c) The total external cost decreases. d) All of the above In economics, the optimal quantity pollution means the point where a) Marginal external cost is zero. b) The marginal external cost of pollution equals the marginal cost of pollution abatement c) The marginal external cost of pollution exceeds the marginal cost of pollution abatement by the largest possible amount. d) Firms maximize profits. Figure 6.2 laghrd MAagiaL Ex7eNAL re PoLkeThoaf S400 120 $1000 S800 400 ew daTener 12 16 20 4 7s waaTe Figure 6.2 shows the marginal cost of abatement and the marginal external cost of pollution. Based on this diagram, the optimal quantity of pollution is a) 0 b) 8 c) 10 d) 16 07 Do u parTare

Answer 1

Answer- sevel of bollection increases - Usually, as the level of bollection marginal extemal Cast (MEC) increases, because it will cost more on others as the lessed of bollection increases. option (a) is correct. ( Answer: 6 In economics, the optimal quantity pollution means the point where, the marginal Social Cast equals to marginal focial benefit. (msc=msB] option ② is correct. Answer: optimal quantity of pollution is 10. at this level, maginal external cast of pollution equals to marginal cast of bellution abetement. option © is correct.