Question

5f6 Figure 6.4 Date Atas per Tony Veghaturing MARGINAL EXTERNAL cost of poacution Super AAARAA Costa - a batement 5 12 16 20 O f waste According to Figure 6.4, which policy would allow the government to achieve efficient control of pollution? a) Imposing a $1,000 per ton emissions charge b) Issuing enough marketable permits to ensure that the permit price will be $1,000 per ton c) Imposing a pollution ceiling of 1,000 tons of waste discharge d) Either a) or b), but not c) Figure 6.4 shows the marginal cost of abatement and the marginal external cost of pollution. Based on this diagram, how much will the firms pollute without government regulation? a) O tons b) 2 tons c) 10 tons d) more than 20 tons Which of the following is a problem with the optimal-pollution concept? a) It does not restrict pollution. b) It is difficult to measure the marginal external cost of pollution. c) It leads to more pollution than firms would choose without government intervention d) Abatement costs have no monetary value.

Answer 1

15) C

The answer c because as we seen in the graph the government imposing ceiling of 1000 at equilibrium point where the both opposite lines intersected that is at 10 firms .

16)C

As we notice in the graph that the tones of waste set it point at q1 on X axis at ceiling point 1000 at p1 on y axis

17)c