Explain why the optimal level of pollution is not zero. According to an EPA study, the health hazards of Superfund sites have been greatly exaggerated and air pollution tends to be a bigger health hazard than toxic waste dumps. Why is more attention focused on toxic waste dumps than on air pollution?© BrainMass Inc. brainmass.com October 25, 2018, 9:35 am ad1c9bdddf
It all ties back to Marginal Cost and Marginal Benefit.
The optimal level of pollution is not zero as at some level of pollution, the marginal cost to reduce the pollution would exceed the marginal benefit received from the reduction in pollution. Waterways and ...
The solution explains the concepts of marginal cost and marginal benefit using the example in the question. It argues that the optimal level of pollution is not zero and provides solid rationale to support the argument.
Managerial Economics Discussion Questions
1. Do you mow your own lawn or do your own cleaning (if you do not have a lawn)? Use the concept of trade-offs to explain why you make the choice you made. Why might your choice be different than someone like Bill Gates or Oprah Winfrey? Are their trades-offs different from yours? Explain.
2. Briefly describe an example of a financial decision from your business, volunteer work you do, or your own household. List some of the opportunity costs incurred. Identify whether these costs were monetary or non-monetary.
3. Discuss the following statement from the standpoints of both efficiency and equity: "Everyone in society should be guaranteed the best healthcare possible."
4. Classify the following statements as positive or normative. Explain.
a. When a worker is laid-off, they ought to receive unemployment benefits until they find a job.
b. Markets are usually a good way to organize economic activity.
c. India has a comparative advantage over the U. S. in producing textiles.
d. The U.S. should import all of its textiles from India.View Full Posting Details