4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 250 50 100 150 200 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?
4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is currently emitting 200 tons of pollution. Suppose the EPA placed a tax of $100 on each ton of pollution emitted. $200 Marginal cleanup cost $180 $160 $140 $120 $100 $80 $60 $40 $20 Pollution Cleanup 250 50 100 150 200 Tons a. How much would the firm spend abating pollution? b. How much would the firm pay in pollution taxes?
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 7PA
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