! solve step by step 2. (an industry. The industry is regulated with an emission tax of $6.) The table below gives the marginal abatement costs of three polluting firms inMarginal abatements costs ($/ton)Emissions(tons/week) Firm 1 Firm 2 Fim 3100 032123184.51024412366.3146018728.23842910810a. What level of emissions does each firm choose? Explain how they respond to the emissionstax.b. What are each firm's total compliance costs? Show your work.c. What is the total level of abatement? Discuss whether this abatement is achieved at the leastcost for society.42TO

Marginal abatement Cost - The expense of eliminating environmental disadvantages such as pollution…

a. What level of emissions does cach firm choose? Explain how they respond to the emissions tax. b. What are cach firm's total compliance costs? Show your work. c. What is the total level of abatement? Discuss whether this abatement is achieved at the least cost for society.

a. What level of emissions does cach firm choose? Explain how they respond to the emissions tax. b. What are cach firm's total compliance costs? Show your work. c. What is the total level of abatement? Discuss whether this abatement is achieved at the least cost for society.

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 43P: A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city....

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Question

! solve step by step

2. (
an industry. The industry is regulated with an emission tax of $6.
) The table below gives the marginal abatement costs of three polluting firms in
Marginal abatements costs ($/ton)
Emissions
(tons/week) Firm 1 Firm 2 Fim 3
10
0 0
3
2
12
3
18
4.
5
10
24
4
12
36
6.
3
14
60
18
72
8.
23
84
29
108
10
a. What level of emissions does each firm choose? Explain how they respond to the emissions
tax.
b. What are each firm's total compliance costs? Show your work.
c. What is the total level of abatement? Discuss whether this abatement is achieved at the least
cost for society.
42TO

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