Solution-Is this standard set efficiently, too stringently

Is this standard set efficiently, too stringently

Reference no: EM13914519

Suppose that the state of Connecticut is attempt- ing to set a water quality standard, where water quality is measured as the percent of mercury abated (A), and the marginal social benefit (MSB) and marginal social cost (MSC) of abate- ment have been estimated as follows:
MSB ¼ 40 - 0:1A MSC ¼ 36 þ 0:25A

The state's department of environmental protec- tion sets the standard at 20 percent. Is this standard set efficiently, too stringently, or too leniently? Explain briefly.

Reference no: EM13914519

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Is this standard set efficiently, too stringently

Reference no: EM13914519

Reference no: EM13914519

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