MDu MDr Pollution EEr Unregulated level 0 2.1 (2 points) What will be the total

Question

MDu MDr Pollution EEr Unregulated level 0 2.1 (2 points) What will be the total social cost of having a differential standard (set for the rural sector and for the urban sector separately)? a (B+D+D(A B+C+D+E) b A+B +C+D+E+F d A B+C+D+E 22 2 points) What will be the total social cost of having a standard for the country (both sectors) set at Ep a. (B+D+E+(A+ B+C+D E+E b A+B+C+D+E+F d A+ B+C+D+E 2.3 (2 points) What will be the total social cost of having a standard for the country (both sectors) set at Eu? a B+D+E)+(A +B CHDHEE b A+B+C+D+E+F C.B+D +E d B+C+D+E (AHBHCHDHE) 2.4 (2 points) The difference in social cost between a differential standard and a uniform standard set at E is the area a. A b. B C. d F

Explanation / Answer

2.1 The total social cost of having a differential standard (set for the rural and urban sector separately) is A +B+C+D+E+F .

2.2 The total social cost of having a standard for the country (both sectors ) set at Er is A+B+C+D+E.

2.3 The total social cost of having a standard for the country (both sectors) at Eu is (B+D+E)+ (A+B+C+D+E+F)

2.4 The diiference in social cost between a differential standard and a uniform standard set at Er is the area : F

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