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1. Noise pollution has adverse effects on whales. Unfortunately, we don't really know all of the damages incurred by whales (i.e., the marginal damage function
1. Noise pollution has adverse effects on whales. Unfortunately, we don't really know all of the damages incurred by whales (i.e., the marginal damage function is uncertain). The graphs below show the marginal abatement costs of reducing noise from whale-watching boats and naval vessels. For which type of boat would a tax on noise pollution be more efficient? Why? Show graphically AND explain in words the quantity of pollution and the welfare effects associated with the three possible damage functions. (20 points) $/decibel MDHigh MAC whale watching boat MD Expected $/decibel MAC container ship MDLOW MDHigh Noise (decibels) MDExpected M-DLOW Noise (decibels)
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