Explore BrainMass
Share

Explore BrainMass

    Emission levles

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

    2. The table below presents estimates of the benefits and costs arising from a program to restrict emissions of sulfur dioxide in Virginia. Current emissions are 10 tons per month.

    Emissions (tons/month) Benefits (million $) Costs (million $)
    10 0 0
    9 6 12
    8 10 14
    7 20 16
    6 34 19
    5 46 24
    4 56 31
    3 64 42
    2 70 55
    1 74 70
    0 76 88

    a) Identify the emissions level at which net benefits would be maximized.
    b) Identify the emissions level that gives the highest benefit-cost ratio.
    c) Explain why your answers in a) and b) are different.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:17 pm ad1c9bdddf
    https://brainmass.com/economics/principles-of-mathematical-economics/emission-levels-145678

    Attachments

    Solution Preview

    a) Identify the emissions level at which net benefits would be maximized.
    The emission level at which net benefit are maximized are is 4 tons/month at this level the benefits are 56 and the costs 31 which gives us a net benefit of 25 ...

    Solution Summary

    This answer provides you an excellent discussion on Emission levels

    $2.19