What is the approximate marginal benefit

Assignment Help Econometrics

Reference no: EM131212468

Marginals and Totals

The following graph illustrates the marginal costs and benefits of reducing emissions of benzene from year 2005 levels in a chemical factory. Currently, the firm is not reducing any emissions at all.

a. Suppose that state regulators tell the firm it must reduce emissions by 20 lbs per day from zero. On the graph, illustrate the areas that show (1) the total benefits of reduction; (2) the total costs of reduction; and (3) the total net benefits of reduction. Approximately, what are these values?

b. If, after achieving a reduction of 20 tons per day, firms then had to increase their reduction further from 20 to 21 lbs per day, what is the approximate marginal benefit? Marginal cost? Increase in net benefit?

c. Suppose it was discovered that the benzene emissions, in addition to doing harm via air pollution to people, were also contaminating the river. How would this affect the picture and the efficient cleanup level?

Reference no: EM131212468

Questions Cloud

Graph the marginal costs and marginal benefits of cleanup : Fill in the marginal columns, and identify the efficient cleanup level. At the efficient cleanup level, what are the net benefits to the family? What are the net benefits to the family if the floor is completely clean?

Standing a half century of title vii enforcement : Why do you think, not with standing a half century of Title VII enforcement, gender association with many jobs continues to this day?

What are the three strongest arguments that you can offer : What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India?

Agreement in order to keep the company : Recently, General Motors and the United Auto Workers had to sit down and negotiate a change in the labor agreement in order to keep the company from going bankrupt. Consider what might have gone on during these negotiations and discuss how framing..

What is the approximate marginal benefit : Suppose it was discovered that the benzene emissions, in addition to doing harm via air pollution to people, were also contaminating the river. How would this affect the picture and the efficient cleanup level?

Briefly describe a local company : Identify and briefly describe a local company's strategic options in competing against global challengers if industry pressures for globalization are strong.

Pugelovias growth has been oriented toward expansion : Pugelovia's growth has been oriented toward expansion of its export industries. - How do you think Pugelovia's terms of trade have been changing during this time period?

Desirous of launching global strategic offensives : Companies desirous of launching global strategic offensives can choose among such strategy options as (1) cross-market subsidization, (2) attacking a rival's profit sanctuaries and (3) dumping goods at cut-rate prices. Explain what is meant by eac..

Global competitor with multiple profit sanctuaries : Explain why a global competitor with multiple profit sanctuaries is well positioned to outcompete a domestic competitor whose only profit sanctuary is its home market.

User Account

All Pages