Explore BrainMass
Share

Socially efficient level

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

3. Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions (E) which are measured in millions of tons.

MAC = 500 - 20 E
MD = 200 + 5E

(a) What is the socially efficient level of emissions abatement? Solve and graph in the space below.

(b) What are the marginal damages and marginal costs of abatement at the socially efficient level of abatement? Show your work below.

MD = MAC =

(c) What are the total net benefits to society at the optimal level of emissions abatement? Show your work below.

(d) What happens to the marginal damages, marginal abatement costs, and total net benefits if 1 million more tons are abated compared to (a)? Show your work.

MD = MAC =

Total Net Benefits =

(e) What happens to the marginal damages, marginal abatement costs, and total net benefits if 1 million fewer tons are abated compared to (a)? Show your work.

MD = MAC =

Total Net Benefits =

© BrainMass Inc. brainmass.com October 24, 2018, 11:01 pm ad1c9bdddf
https://brainmass.com/economics/finance/178740

Solution Summary

The solution answers the question below.

$2.19
See Also This Related BrainMass Solution

Necessity of social regulation

I need help with the following problem.
Discuss the claim that social regulation is unnecessary. Does the claim depend on whether the industry is perfectly competitive or is an oligopoly?

View Full Posting Details