Under what conditions would this level be efficient at the regional level?
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
The only way that this national abatement standard would be efficient across regions is if the MSB and MSC relationships across regions were identical, which is highly unlikely.
You might also like to view...
The option to buy a company's stock at some future time at current prices is often given to CEOs
a. as an incentive to take actions that will raise the share price. b. because CEOs are often friends of those who hire them. c. as a means of discouraging the CEO from taking any risky actions. d. because this has become the custom of the business culture.
From the World Bank's establishment after WWII through the mid-1960s, its development aid focused on
a. basic human needs. b. good governance. c. structural adjustment. d. infrastructure.
Exhibit 12-8 Negative income tax for a family
In Exhibit 12-8, consider a family that earns less than the break-even income level. For each $1 of earned income, this family's government payment will be reduced by:
A. $0.10. B. $0.25. C. $0.33. D. $0.50.
Explain why the marginal cost curve intersects average total cost at the point of minimum average total cost.
What will be an ideal response?