Map Sapling Learning The figure below depicts the marginal social cost (MSC) and

Question

Map Sapling Learning The figure below depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution emissions. Assume the polluters bear none of the social cost of pollution and all of the benefits. Move points OC and OB to the points representing MSC and MSB at the socially optimal quantity of pollution, respectively. Likewise, determine the market-determined quantity and place MDC and MDB at the MSC and MSB for this quantity, respectively. 300 OC MDB What is the socially optimal amount of pollution? 280 260 Number tons 80 160 140 120 100 What is the size of the tax that would move the market to this socially optimal quantity? Number 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 per ton Quant y of pollution emissions (lons)

Explanation / Answer

The Socially optimal amount of pollution is 8 Tons of pollution emissions.

Explanation:- Socially optimal amount of pollution happens where Marginal Social Cost (MSC) and Marginal Social Benefit (MSB) are equal.

In the instant case, Marginal Social Cost (MSC) and Marginal Social Benefit (MSB) are equal at the quantity of 8 tons of pollution emissions. Thus, The Socially optimal amount of pollution is 8 Tons of pollution emissions.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.