2. Consider the following diagram showing a marginal damage curve, a marginal abatement cost curve and an optimal emission fee of $80 per ton. $220 MAC MD $80 so Tons of Emissions 50 100 Use the diagram and a bit of geometry to calculate the following values. A. The total dollar value of emissions fees paid under this system. B. The total damage done at the socially optimal outcome. C. The total abatement cost at the socially optimal outcome. D. The total dead weight loss that would result if a standard were imposed that resulted in zero damage from these emissions. E. The total dead weight loss that would result if there was no regulation of emissions and emitters were allowed to emit as much as they wanted to emit. Just need help with E mainly.
2. Consider the following diagram showing a marginal damage curve, a marginal abatement cost curve and an optimal emission fee of $80 per ton. $220 MAC MD $80 so Tons of Emissions 50 100 Use the diagram and a bit of geometry to calculate the following values. A. The total dollar value of emissions fees paid under this system. B. The total damage done at the socially optimal outcome. C. The total abatement cost at the socially optimal outcome. D. The total dead weight loss that would result if a standard were imposed that resulted in zero damage from these emissions. E. The total dead weight loss that would result if there was no regulation of emissions and emitters were allowed to emit as much as they wanted to emit. Just need help with E mainly.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 1SCQ: Identify the following situations as an example of a negative or a positive externality: You are a...
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