1001 90 80 70 60 50 40 30 20 10 price 30 10 20 30 40 50 60 70 80 90 100 thousands of trees as many as possible MPC MSC Trees planted in urban areas improve air quality, reduce soil erosion, and moderate temperature in hot cities. The figure depicts the market for trees planted in Tempe, Arizona. What is the socially efficient quantity of bamboo trees planted (measured in thousands)? 60 MSB 40 MPB

1001 90 80 70 60 50 40 30 20 10 price 30 10 20 30 40 50 60 70 80 90 100 thousands of trees as many as possible MPC MSC Trees planted in urban areas improve air quality, reduce soil erosion, and moderate temperature in hot cities. The figure depicts the market for trees planted in Tempe, Arizona. What is the socially efficient quantity of bamboo trees planted (measured in thousands)? 60 MSB 40 MPB

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Why is it socially efficient to set marginal benefits equal to marginal costs rather than abating until total benefits equal total costs?
Are socially efficient level of emission and market efficiency is equal? Explain with help of diagram?
In most economic sectors waste is oversupplied. Explain why this is the case and critically discuss the use of economic principles to move the supply of waste to a more sustainable and efficient level.
No hand written solution Afirm has an industrial plant that emits pollutants into a town’s lake. The plant’s marginal abatement function is MAC= 200 – 0.5E and damages caused by its emissions are given by MD = 2E where emissions are in kg. per day. What is the socially efficient level of emissions from this plant? Illustrate this in a graph. As an incentive to reduce emissions to the socially efficient level, government offers to pay the firm for each kg. of emissions it abates per day from this plant. What subsidy per kg. should the government offer? If the plant abates to the socially efficient level of emissions, what total subsidy payment would the firm receive? Identify the area in your graph. How much better or worse off would the firm be compared to if it did no abating? Identify the area in your graph. What would be the net benefit to society if we pay the firm to reduce the plant’s emissions to the socially efficient level? Identify this area in your graph.
Consider the table. Number of street lamps Marginal benefit (in $) 123 4 5 6 7 30 26 22 18 14 10 6 Suppose that a small town wants to install street lamps, which are nonrival in consumption and nonexcludable. Each of the 25 people in the town value street lamps according to the given schedule. Street lamps each cost $250 to install. Use this information to answer the questions. What is the socially optimal number of street lamps? Suppose that 20 of the 25 townspeople decide that they will not help pay for street lamps, and will instead enjoy (for free) the street lamps built by the other five people. What is the maximum number of street lamps that will be built by the remaining five people? Suppose the town government decides to build street lamps and pay for the street lamps through taxation. How much should each person be taxed to pay for the optimal number of street lamps if everyone is taxed equally? S I street lamps street lamps
Plz .... How do companies profit from sustainability ?
Externalities are a form of market failure. Identify two externalities related to Covid-19, one positive and one negative. Graph and explain how each externality affects the optimal amount of the good that is generating the externality.
10 upvotes fast
In the graph below, circle the efficient level of emissions.