28. Esther and Karin each own a pollutingplant. Esther's plant has a marginal disposalcost = 10T ($10 for the 1st ton, $10(2)=$20 forthe 2nd ton ..) and Karen's plant = 15T ($15for the 1st ton, $15(2)=$30 for the 2nd ton ..).Suppose that the government plans to levypollution emission fees in order to"Suppose the government plans to levypollution emission fees to reduce totalpollution by 30 tons. How many tons willEsther have to reduce the level of pollutionfrom his plant with the pollution emission fee?а. 12b. 15C. 18d. 20%3D

In this problem, there are two polluting firms owned by Esther and Karin. The marginal disposal cost…

Answered: Esther have to reduce the level of…

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Esther have to reduce the level of pollution from his plant with the pollution emission fee? а. 12 b. 15 c. 18 d. 20

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 5PA

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Question

28. Esther and Karin each own a polluting
plant. Esther's plant has a marginal disposal
cost = 10T ($10 for the 1st ton, $10(2)=$20 for
the 2nd ton ..) and Karen's plant = 15T ($15
for the 1st ton, $15(2)=$30 for the 2nd ton ..).
Suppose that the government plans to levy
pollution emission fees in order to
"Suppose the government plans to levy
pollution emission fees to reduce total
pollution by 30 tons. How many tons will
Esther have to reduce the level of pollution
from his plant with the pollution emission fee?
а. 12
b. 15
C. 18
d. 20
%3D

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