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Problem 1: Externality Warrenia has two regions. In Oliviland, the marginal benefit associated with pollution cleanup...
cost of cleanup is constant at $120 per unit. What is the optimal level of pollution...
cost of cleanup is constant at $120 per unit. What is the optimal level of pollution cleanup in each of the two regions? 12. The private marginal benefit associated with a product's consumption is PMB = 350 – 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good's production is MD = 4Q. To correct the externality, the government decides to impose a tax of T per...
The marginal damage averted from pollution cleanup is MD = 200 – 5Q. The total cost associated with pollution cleanup is TC = 10Q + 0.5Q^2. a. What is the optimal level of pollution reduction? Show yo...
The marginal damage averted from pollution cleanup is MD = 200 – 5Q. The total cost associated with pollution cleanup is TC = 10Q + 0.5Q^2. a. What is the optimal level of pollution reduction? Show your work and explain b. What amount of tax per unit would generate the optimal amount of pollution reduction from part (a)? Show your work and explain
Suppose that a Vietnam and a South Korea have different marginal benefits of pollution abatement. Specifically,...
Suppose that a Vietnam and a South Korea have different marginal
benefits of pollution abatement. Specifically, the marginal benefit
of pollution abatement in Vietnam is MB=280-30A, and the marginal
benefit of pollution abatement in South Korea is MB=200-10A.
Hello,
I would really appreciate help on this problem with a step by
step solution. Please complete all parts of the problem. Thank you
so much!
2. Suppose that a Vietnam and a South Korea have different marginal benefits of pollution abatement....
The accopmanying graph depicts the marginal social cost (MSC) and marginal social benefit (MSB) of pollution...
The accopmanying graph depicts the marginal social cost (MSC) and marginal social benefit (MSB) of pollution emissions. 1,000 900 Move the point, P, to the point representing the optimal level of pollution. MSC 800 What is the optimal quantity of pollution? 700 Dollars metric tons 400 300 The optimal quantity of pollution is not zero because: 200 MSB O 0 1 2 3 4 5 6 Metric tons of pollution 7 8 9 10 O the marginal social cost of...
A manufacturing plant emits air pollution when producing output. Suppose the marginal benefit (MB) of reducing...
A manufacturing plant emits air pollution when producing output. Suppose the marginal benefit (MB) of reducing air pollution to society is MC 360 MB 300-Q EMC The government expects the marginal cost (EMC) of reducing air pollution for the manufacturing plant to be о 270 240 EMC Q E 210 However, the actual marginal cost of reducing air pollution for the plant is $60 higher per unit. D 180 15 What emissions fee would the government set to reduce the...
Joulutet 3. Assume that a firm has the following marginal benefit of pollution (denoted E for...
Joulutet 3. Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured in tons): MB=150-5 E e. Now assume that instead the government allocates each firm permits to pollute equal to the total current pollution minus 12 tons, but allows the firms to trade. Which firm will purchase permits and which firm will sell permits? Hint: Notice that total pollution reduction of firm 1 plus firm 2 will be 24 tons. f. How much...
Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured...
Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured in tons): MB=150-5E Q: How much would this firm pollute if pollution is unregulated? The government would like to reduce pollution from this amount by 12 tons and so implements a quantity constraint at the quantity in part (a) minus 12. What is the cost to this firm of reducing pollution by 12 tons? What tax would encourage this polluter to reduce pollution by...
Problem 2: Externality Consider the market for education. The marginal social cost of education (MSC) and...
Problem 2: Externality Consider the market for education. The marginal social cost of education (MSC) and the marginal private benefit of education (MPB) are given by the following equations where Q is the number of units of education provided per year. MSC 10+ Q MPB 100-Q You are also told that each unit of education provides an external benefit to society of $10 per unit. This external benefit is currently not being internalized in the market. a) Given the MSC...
The municipality of a small University town has decided that air pollution in the town and...
The municipality of a small University town has decided that air pollution in the town and surrounding area should be reduced and is trying to determine the optimal level of reduction. There are benefits from reducing air pollution (better health, and less health care spending etc.), but there are also costs. The municipality estimates that the marginal benefit of each unit of reduction is $1,400 - 5R, where R is units of reduction, and the marginal cost is 2R. ...
Question 2: Working with Marginal Benefits and Costs Suppose the total benefit derived from a continuous...
Question 2: Working with Marginal Benefits and Costs Suppose the total benefit derived from a continuous decisions, Q, is B() 200-202 and the total cost from deciding Q is C(Q)-4Q +20. The marginal benefit (MB) and marginal cost (MC) is the first order derivative of these functions. MB)2040 and MC() 4 +40 (1) (4 points, 2 each) What is the total benefit when Q-2? Q-10? (2) (4 points, 2 each) What is the marginal benefit when Q-2? Q 10? (3)...
cost of cleanup is constant at $120 per unit. What is the optimal level of pollution cleanup in each of the two regions? 12. The private marginal benefit associated with a product's consumption is PMB = 350 – 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good's production is MD = 4Q. To correct the externality, the government decides to impose a tax of T per...
Suppose that a Vietnam and a South Korea have different marginal
benefits of pollution abatement. Specifically, the marginal benefit
of pollution abatement in Vietnam is MB=280-30A, and the marginal
benefit of pollution abatement in South Korea is MB=200-10A.
Hello,
I would really appreciate help on this problem with a step by
step solution. Please complete all parts of the problem. Thank you
so much!
2. Suppose that a Vietnam and a South Korea have different marginal benefits of pollution abatement....
The accopmanying graph depicts the marginal social cost (MSC) and marginal social benefit (MSB) of pollution emissions. 1,000 900 Move the point, P, to the point representing the optimal level of pollution. MSC 800 What is the optimal quantity of pollution? 700 Dollars metric tons 400 300 The optimal quantity of pollution is not zero because: 200 MSB O 0 1 2 3 4 5 6 Metric tons of pollution 7 8 9 10 O the marginal social cost of...
A manufacturing plant emits air pollution when producing output. Suppose the marginal benefit (MB) of reducing air pollution to society is MC 360 MB 300-Q EMC The government expects the marginal cost (EMC) of reducing air pollution for the manufacturing plant to be о 270 240 EMC Q E 210 However, the actual marginal cost of reducing air pollution for the plant is $60 higher per unit. D 180 15 What emissions fee would the government set to reduce the...
Joulutet 3. Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured in tons): MB=150-5 E e. Now assume that instead the government allocates each firm permits to pollute equal to the total current pollution minus 12 tons, but allows the firms to trade. Which firm will purchase permits and which firm will sell permits? Hint: Notice that total pollution reduction of firm 1 plus firm 2 will be 24 tons. f. How much...
Problem 2: Externality Consider the market for education. The marginal social cost of education (MSC) and the marginal private benefit of education (MPB) are given by the following equations where Q is the number of units of education provided per year. MSC 10+ Q MPB 100-Q You are also told that each unit of education provides an external benefit to society of $10 per unit. This external benefit is currently not being internalized in the market. a) Given the MSC...
Question 2: Working with Marginal Benefits and Costs Suppose the total benefit derived from a continuous decisions, Q, is B() 200-202 and the total cost from deciding Q is C(Q)-4Q +20. The marginal benefit (MB) and marginal cost (MC) is the first order derivative of these functions. MB)2040 and MC() 4 +40 (1) (4 points, 2 each) What is the total benefit when Q-2? Q-10? (2) (4 points, 2 each) What is the marginal benefit when Q-2? Q 10? (3)...
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