What is the optimal degree of air cleanliness-air pollution

Assignment Help Microeconomics

Reference no: EM13695083

Examine the following marginal costs and marginal benefits associated with air cleanliness in a given locale:

Quantity of Clean Air (%) Marginal Cost ($) Marginal Benefit ($)

0 50,000 600,000

20 150,000 360,000

40 200,000 200,000

60 300,000 150,000

80 400,000 120,000

100 Infinite 0

What is the optimal degree of air cleanliness?

What is the optimal degree of air pollution?

Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optimal degree of air cleanliness after this change?

Reference no: EM13695083

Questions Cloud

What is a product or service that chevron offers : What is a product or service that Chevron offers? Create a graph representing the current market it. Use the current market price of one of their products for the Ep and Eq. Name all elements in the graph including, but not limiting to: supply, deman..

Consider demand elasticity and market structure : Bulls Eye department store specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retail..

George and martha each own an undivided interest : What type of property ownership does the following describe? George and Martha each own an undivided interest in a house and surrounding land they call "Mount Vernon;" at George's death his interest passes automatically to Martha.

Vellus case study : Why does Vellus export through local distributors rather than set up its own sales force in country? What are the risks associated with using local distributors? How can these risks be reduced?

What is the optimal degree of air cleanliness-air pollution : What is the optimal degree of air cleanliness? What is the optimal degree of air pollution? Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of..

What is the present value of these cash returns : The Delp Computer Company has developed a new line of desktop computers. It is estimated that cash return generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that(the cash ..

Consider a region with two export products : Consider a region with 2 export products (saxophones and soccer balls) and 2 local goods (haircuts and music concerts). The production of each export good is subject to localization economies, so each city specializes in one export good.

Conditions in the industry under both market structures : Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. Which of the following statements comparing the conditions in the industry under both market structures is true?

A natural monopoly-such as a local electricity provider : A natural monopoly, such as a local electricity provider, is the result of:

User Account

All Pages