Question
In constructing a new building, the building contractor must decide what technology to use the mitigate the noise pollution that the construction would cause. Assume
In constructing a new building, the building contractor must decide what technology to use the mitigate the noise pollution that the construction would cause. Assume that typ- ical street noise without any construction is 60 decibels (dB), while the street noise while the construction is going on would be 110 dB without any noise-mitigating technology. The cost of constructing the building while maintaining a street noise level of x dB (for x between 60 and 110) is T C(x) = 1, 000, 000 + (110 x)2, measured in Australian dollars. The total externality cost of experiencing x dB (for x between 60 and 110) of street noise for nearby residents would be Ext(x) = [(x60)(x59)]/2
(a) Find a formula f (x) for the difference T C(x) T C(x + 1). Carefully discuss what f (x) approximately represents.
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