The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Firm Marginal Cost to Eliminate (Dollars) First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 В 57 68 86 108 54 66 82 107 62 73 91 111 Refer to Table 10-5. If the government wanted to reduce pollution from 16 units to 6 units, which of the following fees per unit of pollution would achieve that goal? a. $83 b. $68 c. $67 d. $81

The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Firm Marginal Cost to Eliminate (Dollars) First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 В 57 68 86 108 54 66 82 107 62 73 91 111 Refer to Table 10-5. If the government wanted to reduce pollution from 16 units to 6 units, which of the following fees per unit of pollution would achieve that goal? a. $83 b. $68 c. $67 d. $81

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 44P: In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible...

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How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
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What is an externality?
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Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?
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