The local environmental authority levied an emissions fee of $30 per ton of waste on a firm that has the marginal cost of abatement (MCA) curve displayed in the figure below. What level of emissions will the firm release?  How much will it pay in emissions fees?

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 16RQ: What is the difference between private costs and social costs?
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The local environmental authority levied an emissions fee of $30 per ton of waste on a firm that has the marginal cost of abatement (MCA) curve displayed in the figure below. What level of emissions will the firm release?  How much will it pay in emissions fees?

 

$ per ton
МСА
$30
50
100
Level of Emissions (tons)
Transcribed Image Text:$ per ton МСА $30 50 100 Level of Emissions (tons)
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