Suppose the courts issue an injunction to the factory which stipulated that they must stop polluting the river unless the kayak and innertube rental businesses reach an agreement with the factory allowing the factory to pollute. a) Given this situation, what is the socially efficient outcome? Explain.
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- What is a pollution charge and what incentive does it provide for a firm to take external costs into account?A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this City. What is the optimal level of sewage for this city? How can you tell?Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
- How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?Complete the second column of the following table by indicating who buys and sells permits in this case. Complete the fourth column of the table with the number of permits each firm ends up with after trading with the others. Next, subtract the number of permits from the initial pollution level to determine how many units of pollution reduction each firm has to complete, and enter these values into the fifth column of the table. Next, determine the total cost of reducing the pollution levels you determined in the previous column, and enter that into the final column of the table. Finally, add up the total pollution reduction costs for each firm and enter the total amount in the final cell of the total row in the following table. Firm A B C Total Buys or Sells Initial Pollution Level 30 45 60 If permits could not be traded, firm A would have to remove units of pollution at a total cost of $ The overall cost of reducing pollution in this case is $ " Permits after Trade Remaining…stion 10 « < Questi 4 points Marginal Cost to Eliminate (Dollars) Firm First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 57 68 86 108 54 66 82 107 D 62 73 91 111 The table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional If the government wanted to reduce pollution from 16 units to exactly 8 units, which of the following fees per unit of pollution would achieve that goal? 70 O 85 O 87 O 80
- The following companies all manufacture widgets and dump tons of glop into the air. Current contribution to overall pollution Manufacturer Polluters-r-us Smog brothers inc Costs to clean up 1 ton of glop $70 $100 $30 200 200 200 Really dirty industries The government wants to halve total pollution but does not know how much it will cost each company. Determine the total cost of the cleanup if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost.Explanation it correctly Q)Is nutella positive externalities or negative?warten population manghe ecosystem's Carrying capacity? 6. We have the following data for Demand Price and Costs for our product. Quantity Demand Price Costs 300 100 $21.63 $35.35 $5040.00 $2347.67 500 $17.25 $7481.67 1000 $12.70 $12469.67 1500 $10.26 $16196.00 We have reason to believe that the Demand Price is a power (exponential) function of some kind. Our Cost function is close to linear, but we expect, from some market analysis, that it is in fact quadratic. Approximate this data with a Demand Price function and a Cost function. Explain how confident you are; that is, how much error do you think is reasonable in this type of scenario? 区
- Consider the following graph that shows the marginal abatement cost (MAC) curve for a coal power plan for reducing local air pollution and the marginal damage (MD) curve for those living around the coal power plant. MD (E) MAC (E b. Emissions E-0 E EL E-Max AMax Or Abatement E A-0 What are the total abatement costs at E' (enter your answer with the letters and "+" signs as "a+b+c+d+e+f", without the quotation marks. What are the total abatement costs at E-0 (enter your answer with the letters and "+" signs as as "a+b+c+d+c+f", without the quotation marks. If the property rights were with the coal power plant how much Emissions would we see? (enter one of the following, "E-0", "E", "E1", "E-Max") If the property rights were with the people how much Emissions would we see? (enter one of the following. "E-0", "E", "E1 "E-Max") What is the socially optimal level of emissions (choose from one of the following and enter as written without the quotation marks, "E-0". "E"E1 "E-Max").Externalities Quantity 0 5 10 15 20 25 30 Private Marginal Cost (PMC) 25 35 40 50 120 External Cost 30 70 75 100 Social Marginal Cost (SMC) 90 85 105 140 170 Page 1 eEcon Return to Activity Score Mentor Mega Beans Market Booming Berries Booming Berries Materials Mark, if the external marginal cost from Booming Berries is $20 per thousand pounds, what is the socially efficient price per pound? 130 Booming Berrles 120 Clare 110 100 $70 90 80 70 Mark 60 That is correct! 50 40 30 Econ 20 Mentor 10 Mark, if the external marginal cost from Booming Berries is $20 per thousand pounds, what is the socially efficient quantity (in thousands)? 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (in thousands) Clare Enter a response then click Submit below (in thousands) Submit MacBook Air F12 FI1 F9 F10 F8 F7 F6 888 F4 F5 F3 F2 esc F1 * & 24 % 8 @ # 7 3 4 2 T E Q tab Price (per pound)