Assume that the uniform standard on TSDFs is associated with the following benefit and cost relationships TSB 20Q 0 1Q 2 MSB 20 0 2Q TSC 8Q 0 2Q 2 MSC 8 0 4Q where dollar values are in thousands of dollars, and Q is the number of inspection procedures a Because the standards on TSDFs are benefit ba...

a Maximum total social benefits TSB occur at the point ...

Assume that the uniform standard on TSDFs is associated with the following benefit and cost relationships: TSB

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Assume that the uniform standard on TSDFs is associated with the following benefit and cost relationships:

TSB = 20Q − 0.1Q²

MSB = 20 − 0.2Q

TSC = 8Q + 0.2Q²

MSC = 8 + 0.4Q

where dollar values are in thousands of dollars, and Q is the number of inspection procedures.

a. Because the standards on TSDFs are benefit-based, find the Q that maximizes TSB, and evaluate TSC and TSB at that level.

b. Show that an efficient standard would lower TSC and increase total net benefits.

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Environmental Economics and Management Theory, Policy and Applications

ISBN: 978-1111826673

6th edition

Authors: Scott J. Callan, Janet M. Thomas

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Question Posted: Sep 22, 2018 01:03 PM

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Assume that the uniform standard on TSDFs is associated with the following benefit and cost relationships: TSB

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Environmental Economics and Management Theory, Policy and Applications

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