4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 50 100 150 200 250 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?

4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 50 100 150 200 250 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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