the marginal social cost of garbage disposedis: MSCd (gd) = 10, where gd is a 50 gallondrum of garbage disposed. The marginal costof recycling is: MSC (gr) = 2gr, where gr is a 50gallon can of recyclables collected. Themarginal benefit for the resident of garbageremoved from the residence is: MB(gd, gr) =800 - 2(gd + gr).At an economically efficient level, how many []50-gallon cans of materials a resident shallrecycle? (Assuming most of residential wastegenerated can be recycled, i.e., the resident canrecycle as much as desired.)

Marginal social cost of disposable = 10 Marginal cost of recycling = 2gr Marginal Benefit = 800 -…

Answered: the marginal social cost of garbage…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A coal fired power plant provides power to all of Melbourne: it burns coal to produce electricity, and consequently pollutes the air as a by-product. The power plant produces electricity (quantity expressed in millions kilowatt hours, kWh) at a total cost TC (Q)= 7Q2 + 40 Q The social cost of electricity production is 36Q2 The total benefit of electricity production for the city of Melbourne, which is also equal to the total benefit of the power plant, is TB (Q)=100Q-Q2 1) Calculate the socially optimum quantity of electricity traded 2) The Victorian government considers imposing a tax on electricity production in $ per million of kWh produced. What tax should it impose to reach the the socially efficient outcome (in $ per million kWh)? 3) Suppose that instead of taxation, the government tries to regulate quantities. What kind of direct regulation could the government choose to achieve socially optimal production?
E2: complete the following using the graph.
From an economic perspective, the optimal quantity of CO2 is:a) zerob) the level at which species extinction is eradicated c) the level at which the marginal benefit of emissions = the marginal cost of emissionsd) the level at which the rate of economic growth = rate of inflatione) the level at which the total average costs of emissions reach a minimum
Suppose MAC functions for two firms, Firm 1 and Firm 2, are MAC₁= 60-2E₁and MAC₂-48-3E2 respectively. (i) Suggest the (socially) cost-effective way to set emission standards for the two firms to reduce their combined level of emissions to 20 units. [Note that we want only 20 units of emissions from the two firms at the end.] (ii) What is the sum of the abatement costs (or total social compliance costs) when emissions are reduced from the two firms to 20 units in the socially cost-effective manner by using emission standards. [This is related to part (i).] (iii) What emission tax rate applied simulataneously to the two firms reduces the combined level of emissions to 20 units from the two firms just as the cost-effective way to set standards? [This question needs to answered based on your answer(s) to part (ii).]
Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC1 = 10 - 2E1 MAC2 = 4 - E2 If both firms cut their emissions to zero, then total abatement costs (TAC) for both firms is ____. THE ANSWER IS NOT 17
Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 8 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 4 - 0.5E. Moreover, assume that the adoption costs for the new technologies are $3. If the government raises the tax on emissions from $1 to $3, then the firm's total costs increase by $__. (Hint: total costs are different from total compliance costs. Total compliance costs are the sum of TAC and tax payment, while total costs are the sum of total compliance costs and adoption costs (remember that adoption costs are only incurred if the firm actually decides to adopt the new technology).) Please round your final ansswer to two decimal places if necessary. Answer:
Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 12 – E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 6 – 0.5E. The adoption costs for the new technology are $6. If the government raises the tax on emissions from $1 to $4, the benefits of adopting the new technologies increase by $. Select one: a. $7.50. O b. $12. C. $3. O d. $4.5.
Suppose Firm A is the anly producer in some market. You are given information about the market demand and marginal cost for Firm As product Firm A's market demand is given by: Q= 60 - P Firm A's marginal cost is given by: MC = 6+Q A) Calculate the profit-maximizing output for Firm A. B) Calculate the profit-maximizing price for Firm A. Calculate what would have been the socially efficient output level produced in this market.
Within the remote nation of New Hope, total industrial production is currently creating a constant level of GDP that results in 2,600 million tonnes per year of carbon being released into the atmosphere. The government announced three years ago that a cap on carbon emissions of 2,430 million tonnes would be imposed. This triggered the creation of new firms that began to plant large plantations of trees grown specifically to absorb carbon from the atmosphere and thus earn carbon credits that they would sell to the highest bidder. See table below for the supply of these earned carbon credits available when the program begins. Quantity of Credits Price of Carbon Credits Created $ 1,125 40 1,225 70 1,325 100 1,425 140 1,525 170 1,625 200 1,725 230 a. What will be the initial price for carbon credits? Initial price $ Next, assume that new technology enables the same level of GDP to be achieved with 5 percent less carbon emissions. b. Now what is the price of carbon credits? Price $
A farmer is located next to the rancher. They face the following problem.Cattle graze on the farmer's fields and cause $30 worth of damage to corn each year. The rancher's business is worth $100 annually (not taking into account any crop damage). The farmer's business is worth $80 before the cattle trample the corn It would cost $10 to build a fence that would keep the cattle off the farmer's property. If the farmer is given property rights If the rancher is given property rights O A. the rancher will pay the farmer $30 in damages; the farmer will accept the $30 in crop damages B. the rancher will pay the farmer $30 in damages; the farmer will build the fence O C. the rancher will build the fence; the farmer will build the fence O D. the rancher will build the fence; the farmer will accept the $30 in crop damages
A group of 100 residents in a small community have decided to pay for a local police force. Each resident has the same marginal valuation schedule for intensity of police protection per day which is defined in terms of the number of police officers on duty Q as MV (Q) = 30 - 4Q. The protection is a public good and it costs $200 per police officer per day. (a) What number of police officers is efficient? (b) Explain why this level of protection might not be provided in a competitive market.
Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 6 - 0.5E. With an emissions tax of $3, the benefits of adopting the new technologies equal $__. Please round your final answer to two decimal places if necessary. Answer:

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