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The Three Firms Below Have Five Choices for Pollution Control

question 187

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The three firms below have five choices for pollution control: no controls or four different technologies,W,X,Y and Z.The amount of pollution emitted and the cost of the technologies are shown in the table. The three firms below have five choices for pollution control: no controls or four different technologies,W,X,Y and Z.The amount of pollution emitted and the cost of the technologies are shown in the table.   -Refer to the information above.Suppose that the government imposes a tax of $1400 per ton of pollution.As a result,pollution emissions are __________ tons and the total private cost is __________. A)  18;$1900 B)  21;$2700 C)  16;$2500 D)  12;$4800 E)  17;$2300
-Refer to the information above.Suppose that the government imposes a tax of $1400 per ton of pollution.As a result,pollution emissions are __________ tons and the total private cost is __________.


Definitions:

Long-Run Cost Function

An economic model that describes how production costs change over time as all inputs can be varied by the producer.

Marginal Cost Function

A mathematical relationship describing how the cost of producing one additional unit of output varies as production scale changes.

Optimal Output

The level of production that maximizes a firm's profit, where marginal revenue equals marginal cost.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting gains from trade.

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