In closing down a military base, environmental inspectors found 100 tons of toxic waste. Which of the following is NOT a determinant of the consumer surplus generated by cleaning up 40 tons of waste?

Question

Quizplus · Accepted Answer

The original quantity of toxic waste found by the inspectors is not a determinant of the consumer surplus generated by cleaning up 40 tons of waste. The determinants that do affect consumer surplus are A, C, D and E. The price of removing a ton of toxic waste will affect the cost of cleanup, which will in turn affect consumer surplus. The quantity of toxic waste removed by cleanup will determine the amount of reduction in environmental harm and will therefore affect consumer surplus. The effect of each ton reduction of toxic waste on the profitability of the alternative uses for this land will affect the cost of cleanup, which will in turn affect consumer surplus. The effect of each ton reduction of toxic waste on the health of citizens living near the base will determine the benefits of cleanup, which will affect consumer surplus.

In Closing Down a Military Base, Environmental Inspectors Found 100