Question: Please provide calculation and justification for all answer Table 10-5 The following table shows the marginal costs for each of four firms (A, B, C,
Please provide calculation and justification for all answer


Table 10-5 The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Marginal Cost to Eliminate Firm (Dollars) First Unit Second Unit Third Unit| Fourth Unit A 54 67 82 107 B 57 68 86 108 C 54 66 82 107 D 62 73 91 111 Refer to Table 10-5. Suppose the government wants to reduce pollution from 16 units to 8 units and auctions off 8 pollution permits to achieve this goal. Which of the following is a likely auction price of the permits? $69 You Answered $85 Correct Answer $79 $87 O wTable 10-5 The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Marginal Cost to Eliminate Firm (Dollars) First Unit Second Unit Third Unit Fourth Unit A 54 67 82 107 B 57 68 86 108 C 54 66 82 107 D 62 73 91 111 Refer to Table 10-5. If the government wanted to eliminate exactly 7 units of pollution, which of the following fees per unit of pollution would achieve that goal? $85 $87 Correct Answer O $71 $74
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
