Suppose the marginal cost of pollution abatement is constant and equal to 2 percent of GDP for each 10 percent increase in pollution control. Given the following data for an $8 trillion economy, answer two questions. Marginal Benefit ($ trillions) Level of Pollution Abatement (%) O (no pollution control) 10 2.0 20 1.7 30 1.3 40 1.0 50 0.8 60 0.6 70 0.4 80 0.3 90 0.2 100 (zero emissions) 0.1 Instructions: Enter your responses based on the percentage values provided in the table. a. Identify the optimal rate of pollution abatement. % Now suppose that the marginal costs of pollution abatement decrease to 1 percent of GDP for each 10O percent increase in pollution control because of improved pollution control technology and more efficient sources of renewable energy. b. Identify the new optimal rate of pollution abatement. %
Suppose the marginal cost of pollution abatement is constant and equal to 2 percent of GDP for each 10 percent increase in pollution control. Given the following data for an $8 trillion economy, answer two questions. Marginal Benefit ($ trillions) Level of Pollution Abatement (%) O (no pollution control) 10 2.0 20 1.7 30 1.3 40 1.0 50 0.8 60 0.6 70 0.4 80 0.3 90 0.2 100 (zero emissions) 0.1 Instructions: Enter your responses based on the percentage values provided in the table. a. Identify the optimal rate of pollution abatement. % Now suppose that the marginal costs of pollution abatement decrease to 1 percent of GDP for each 10O percent increase in pollution control because of improved pollution control technology and more efficient sources of renewable energy. b. Identify the new optimal rate of pollution abatement. %
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 13PAE
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