Macmillan Learning The accompanying schedule depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution emissions. Assume the polluters bear none of the social cost of pollution and all of the benefits. Quantity is measured in tons. Social Cost- Benefit Schedule Q MSB MSC What is the socially optimal amount of pollution? 9 tons 7 tons 8 tons 0 tons What is the size of the tax that would move the market to this socially optimal quantity? What is the size of the tax that would move the market to this socially optimal quantity? $135 per ton $105 per ton $120 per ton $150 per ton 4 180 60 09 5 165 75 75 6 150 90 00 7 135 105 8 120 120 9 105 135 10 90 150 = 11 75 165 12 60 00 180 13 45 195 14 30 210 15 15 225 16 0 240
Macmillan Learning The accompanying schedule depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution emissions. Assume the polluters bear none of the social cost of pollution and all of the benefits. Quantity is measured in tons. Social Cost- Benefit Schedule Q MSB MSC What is the socially optimal amount of pollution? 9 tons 7 tons 8 tons 0 tons What is the size of the tax that would move the market to this socially optimal quantity? What is the size of the tax that would move the market to this socially optimal quantity? $135 per ton $105 per ton $120 per ton $150 per ton 4 180 60 09 5 165 75 75 6 150 90 00 7 135 105 8 120 120 9 105 135 10 90 150 = 11 75 165 12 60 00 180 13 45 195 14 30 210 15 15 225 16 0 240
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Macmillan Learning
The accompanying schedule depicts the marginal social cost
(MSC) and the marginal social benefit (MSB) associated with
pollution emissions. Assume the polluters bear none of the
social cost of pollution and all of the benefits. Quantity is
measured in tons.
Social Cost-
Benefit Schedule
Q
MSB MSC
What is the socially optimal amount of pollution?
9 tons
7 tons
8 tons
0 tons
What is the size of the tax that would move the market to this
socially optimal quantity?
What is the size of the tax that would move the market to
this socially optimal quantity?
$135 per ton
$105
per ton
$120 per ton
$150 per ton
4
180 60
09
5
165 75
75
6
150
90
00
7
135
105
8
120
120
9
105
135
10 90
150
=
11 75
165
12
60
00
180
13
45
195
14
30
210
15
15
225
16
0
240
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