Question
A manufacturing plant emits air pollution when producing output. Suppose the marginal benefit?(MB) of reducing air pollution to society is MB=300?Q. The government expects the
A manufacturing plant emits air pollution when producing output. Suppose the marginal benefit?(MB) of reducing air pollution to society is MB=300?Q.
The government expects the marginal cost?(EMC) of reducing air pollution for the manufacturing plant to be EMC=Q.
?However, the actual marginal cost of reducing air pollution for the plant is ?$30 higher per unit.
What emissions fee would the government set to reduce the amount of air pollution it believes to be?optimal? Assume the government uses the expected marginal cost of reducing air pollution in its calculations.
The government would set an emissions fee of ?$........ per unit.???(Enter a numeric response using a real number rounded to two decimal?places.)
Using the triangle drawing?tool, shade in the deadweight loss ?(DWL) from the emissions fee given the actual cost of the manufacturing plant reducing air pollution. Attach the provided label.
Deadweight loss from the emissions fee is ?$......
. ?(Enter a numeric response using a real number rounded to two decimal?places.)
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