Pollution Cleanup 800 700 600 500 400 300 200 100 MC MB 0 10 20 30 40 50 60 70 80 90 100 Benefits and Costs Quantity of Pollution Cleaned Up
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We are given a scenario involving pollution cleanup in Blue Lake, with details about the marginal benefit (MB) and marginal cost (MC) at different levels of pollution cleanup. We need to determine the relationship between MB and MC at 30 units and 90 units of Show more…
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The table below shows the various levels of a city's pollution cleanup along with the marginal benefit and marginal cost: Pollution Cleanup Marginal Benefit (dollars) | Quantity of Pollution Cleanup (units) | Marginal Cost (dollars) $1,000 | 25 | $250 750 | 50 | 750 500 | 100 | 1,250 250 | 150 | 1,750 150 | 200 | 2,500 Instructions: Enter your answers as a whole number: a. Suppose the city decides to undertake a cleanup level of 25 units. The marginal benefit of cleaning up the 25th unit is $ The marginal cost of cleaning up the 25th unit is $ Since the marginal benefit is (Click to select) the marginal cost, the city should clean up (Click to select) pollution. b. Suppose the city decides to undertake a cleanup level of 200 units. The marginal benefit of cleaning up the 200th unit is $ The marginal cost of cleaning up the 200th unit is $ Since the marginal benefit is (Click to select) the marginal cost, the city should clean up (Click to select) pollution. c. The optimal level of pollution cleanup is units.
Azat N.
The marginal damage averted from pollution clean-up is MD =200-5Q. The marginal cost associated with pollution cleanup is MC = 25 +2Q. a. What is the optimal level of pollution reduction? b. Show that this level of pollution reduction could be accomplished through taxation. What tax per unit would generate the optimal amount of pollution reduction?
Haricharan G.
Suppose the cost of operating a 75-room hotel for a night is $6,000, and there are 5 empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay: a. $40 or more, as the average benefit will exceed the marginal cost b. $40 or more, as the marginal benefit will exceed the marginal cost c. $80 or more, as the average benefit will exceed the marginal cost d. $80 or more, as the marginal benefit will exceed the marginal cost
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