Question
PLZ FILL IN THE BLANKS USING INFORMATION PROVIDED The town of Pollutionville has two smelting factories, Factory A and B.Each factory produces air pollution.Factory A's
PLZ FILL IN THE BLANKS USING INFORMATION PROVIDED
The town of Pollutionville has two smelting factories, Factory A and B.Each factory produces
air pollution.Factory A's marginal abatement costs are given by MACA=20-0.5eA.Factory B's
marginal abatement costs are given by MACB=50-eB.The Pollutionville City Council wants to
introduce a constant per unit emissions tax that will reduce total emissions from the two factories
by 50% cost-effectively.
24. What constant per unit emissions tax should the Pollutionville City Council levy? _________
25. With the tax, emissions in Factory A will decrease to eA =____________________.
26. With the tax, emissions in Factory B will decrease to eB= _____________________.
27. With the tax, the Council will collect tax revenues that total $ _____________.
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