Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of O 13 O 4 O 8
Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of O 13 O 4 O 8
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...
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![MAC of reducing SO2 emission
Tons of SO2
Firm 1
Firm 2
Firm 3
1st
3
2
2nd
12
6
4
Зrd
18
9
6.
4th
24
12
8
5th
30
15
10
6th
36
18
12
The table shows the marginal abatement costs of reducing SO2 pollution. Each firm is emitting 6 tons of SO2 into the air
currently.
QUESTION 3
Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of
reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of
O 13
O 4
O 7
8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8160816b-7297-43ae-8509-da7d6d4d54fc%2F25b0636c-e805-4393-bf5d-416435376c6b%2Fb07t80k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MAC of reducing SO2 emission
Tons of SO2
Firm 1
Firm 2
Firm 3
1st
3
2
2nd
12
6
4
Зrd
18
9
6.
4th
24
12
8
5th
30
15
10
6th
36
18
12
The table shows the marginal abatement costs of reducing SO2 pollution. Each firm is emitting 6 tons of SO2 into the air
currently.
QUESTION 3
Suppose the government doesn't know each firm's costs of abatement. The socially efficient or least cost of
reducing the pollution from 18 tons to 6 tons can be brought about by a per-unit SO2 tax of
O 13
O 4
O 7
8
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