..i: 1:24 AM Touch to return to call 07:07 Principle ef Micreeconemics, Fall 201
ID: 1125075 • Letter: #
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..i: 1:24 AM Touch to return to call 07:07 Principle ef Micreeconemics, Fall 2017 Instructor: Hanol Lee Homework #3 Due: 12 December 2017 (Befere class) 19-21 Thc following table shows the total costs for each of Sour firms (A·B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to climinate one unit of pollution, it would cost $46, and for Firm A to climinate two units of pollution, it would cost a total of 103 19, If the govemment charged a fee of 585 per unit of pollution, how many units of pollution would the firms eliminate altogether? a. 10 b. 12 c. 14 d 16 20. Suppose the government wanted to reduce pollutiom from 16 units to exactly 6 units. Which cne of the following fees per unit of pollution would achieve that goal? a. 565 b. $70 e. $75 d 595 21. Suppose there is presently no pollution foe, and the govermment wishes to climinate exactly 8 units of pollution. Which of the following foes per unit of pollution would achieve that goal? a. S65 b. $75 e. sso d $88 Principle ef Micreeconemics, Fall 2017 Iestructor: Hanol Lee Homework #3 Due: 12 December 2017 (Hefere class)Explanation / Answer
19. Firm A incurs 446 to reduce the first unit of pollution. Now when it wants to reduce the second unit of pollution, it costs hin $103 so it is profitable for the firm to pay the fees for the second unit of pollution.
Similarly, all firms reduce one unit of pollution. Total unit of pollution emission= 4x3 units = 12 units.
b) 12
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