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The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy.

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Okay, guys, So question it live in says that the states of Colorado requires oil and gas companies. We use frank in techniques to return the land to its original condition after the oil and gas extractions. Tabletop 0.9 showed the total cost and thoughts with benefits in dollars of this policy. Okay, So cars that just we wrote the table over here and also calculated the marginal cost and the marginal Bennett So the city's land restored. This is total cost. This is total benefits. This is the marginal cost calculated by me. This is also the marginal benefit to calculate so question a sense that calculate the marginal cost in marginal benefits at each quantity acre of land restored. I see constant industry structure. If you need a refresher now to calculate marginal cost a marginal benefits. Guys, this is how you calculate marginal cost in marginal benefits. Marginal cost is equal to changing. Soto accost divided by your changing Dan restored all you're changing quantity. A marginal benefit is equal to changing total benefits divided by changing them restored or changing quantity. So if I take this formula in applied here for marginal cost, we can see that changing total cost, Trini, Because Trini matter zero. That's training. You're changing down. Restored. There's 100 minus zero. That's 100. So a marginal cost will be to any minor zero divided by 100 minus zero. Got zero coming, too. And that's why I have zero comma two over here. But let's do it for marginal finish. This time, let's pick this value so marginal benefits will be 240 minus 100 and 40 which is 100 divided by 200 miles. 100. And we will keep this. 249 is Andrea 40 which is 100 divided by 200 miners. 100 is equal to wine. That's why over here we have one. Okay? You just repeat the step so you do it for each and every value. Yeah. For this value, you'll see that 80 minus training is 60. Divided by training. Miners are 100 which is 100 60 divided by 100 which is your promise. And yeah, it's 100 and 60 minus 80. Divided by 300 minus 200. First, you're changing total cost divided by changing land restored, which is 60 divided by Oh, sorry, which is 160 minus 80 18. Divide about 300. My 200. That's 100 kids your age. And here for this value, say, 18 months between you at 60 divide about 200 miles. 100 That's 100 60. Divided by Hodges. That's your You repeat the steps, guys. Simple 280 miles 160. That is 120 divided by ah 100 because 409 100 100. So founder and 20 divided by 100. That's why I'm coming, too. That's for your marginal cost. You do exactly the same thing for marginal marginal benefit is equal to change in total benefits divided by changing land restored. So, yeah, it's going to be on your party. Kate minus zero that sounded off. 40. Divided by 100 minus zero. That's 100 240 divided by 100. That's one common for and we really did this one. Let's do this one the other. And Trini, my soldier 40. That is 80. Divide about 300 minus 200. That is 100. So 80 divide about 100. That's Yocum here, 480 minus 220. Divide about 400. My 300. That will be 165 100 Which gives you one coming. Now you have your marginal cost condom on your marginal benefit. That's question a right in question being asked that if we apply a marginal analysis, what is the optimal amount of Lance? Agree? Store. No. Guys answer more land. It was restored. We had marginal cost. He's equal to marginal. If every marginal cost in marginal benefits are not equal, Larry store will not be optimal. If they are, as in this instance zero comma 80 comma h. Then this is the optimal land to be restored, which is your final answer. Thank you, guys. Mom, hope this really

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