Many municipalities are concerned about the environmental impact of plastic bags, which often end up as...

  

Transcribed Image Text:

Many municipalities are concerned about the environmental impact of plastic bags, which often end up as litter, clogging drains and hanging from tree branches. A town is considering whether to impose a tax on piastic bags to be collected at the store, or a per person quota. Cindy and Carl are two average citizens who both use plastic bags when they go grocery shopping. The figure below shows the net marginal benefit they gain from each bag they use. (A) Quota (B) Tax Net marginal benefit ($) Net marginal benefit ($) 1.1- 1.1 Quota 1.0 1.0 0.0 0.0 0.8 - 0.8 - 0.7 - 0.7 - 0.0- 0.0 - 0.5 0.5 Cindy Jas.-- 0.4 - 0.4 0.3- 0.3 0.2- 0.2- Cindy Carl 0.1 - 0.1 - Carl 0.0 0.0 10 15 20 25 30 35 40 45 50 55 60 10 15 20 25 30 35 40 45 50 55 60 Quantity of plastic bags Quantity of plastic bags Instructions: Round your answers to the nearest cent. a. Under the quota, the marginal benefit of the last bag for Cindy is $ 0.60 and for Carl $ 0.30 Instructions: Round your answers to the nearest whole number. b. Under the tax, Cindy will use 10 bags and Carl will use 30 bags. Instructions: Round your answers to the nearest cent. The marginal benefit of the last bag for Cindy is $ 0 and for Carl $ Instructions: Round your answers to the nearest whole number. After subtracting the tax, the marginal benefit of the last bag for Cindy is $ 0.40 and for Carl $ 0.40 c. The town should adopt: a plastic-bag quota because fewer people will complain. a plastic-bag quota because it achieves the same outcome in terms of the number of bags but does so more efficiently. a plastic-bag tax because it achieves the same outcome in terms of the number of bags but does so more efficiently. a plastic-bag tax because revenue will be collected and the cost will be lower. Many municipalities are concerned about the environmental impact of plastic bags, which often end up as litter, clogging drains and hanging from tree branches. A town is considering whether to impose a tax on piastic bags to be collected at the store, or a per person quota. Cindy and Carl are two average citizens who both use plastic bags when they go grocery shopping. The figure below shows the net marginal benefit they gain from each bag they use. (A) Quota (B) Tax Net marginal benefit ($) Net marginal benefit ($) 1.1- 1.1 Quota 1.0 1.0 0.0 0.0 0.8 - 0.8 - 0.7 - 0.7 - 0.0- 0.0 - 0.5 0.5 Cindy Jas.-- 0.4 - 0.4 0.3- 0.3 0.2- 0.2- Cindy Carl 0.1 - 0.1 - Carl 0.0 0.0 10 15 20 25 30 35 40 45 50 55 60 10 15 20 25 30 35 40 45 50 55 60 Quantity of plastic bags Quantity of plastic bags Instructions: Round your answers to the nearest cent. a. Under the quota, the marginal benefit of the last bag for Cindy is $ 0.60 and for Carl $ 0.30 Instructions: Round your answers to the nearest whole number. b. Under the tax, Cindy will use 10 bags and Carl will use 30 bags. Instructions: Round your answers to the nearest cent. The marginal benefit of the last bag for Cindy is $ 0 and for Carl $ Instructions: Round your answers to the nearest whole number. After subtracting the tax, the marginal benefit of the last bag for Cindy is $ 0.40 and for Carl $ 0.40 c. The town should adopt: a plastic-bag quota because fewer people will complain. a plastic-bag quota because it achieves the same outcome in terms of the number of bags but does so more efficiently. a plastic-bag tax because it achieves the same outcome in terms of the number of bags but does so more efficiently. a plastic-bag tax because revenue will be collected and the cost will be lower.

Answer rating: 100% (QA)

Answer a Under the quota the marginal benefit of the last bag for Cindy is 060 and for Carl 030 Reas... View the full answer