Consider the following illustrative numbers,applying to a manufacturing firm for which a pollution-control regulation has been proposed:
$$\begin{array} { | l | l | }
\hline { \text { Estimated Production Costs: } } \
\hline \text { Before the regulation: } & \$ 8900 \
\hline \text { In the future with the regulation: } & \$ 9700 \
\hline \text { In the future without the regulation: } & \$ 9200 \
\hline
\end{array}$$
Determine the before/after costs of the regulation and the with/without costs of the regulation.Which of these two costs best reflects the true cost of the regulation?

Question

Consider the following illustrative numbers,applying to a manufacturing firm for which a pollution-control regulation has been proposed:
 $$\begin{array} { | l | l | } 
\hline  { \text { Estimated Production Costs: } } \
\hline \text { Before the regulation: } & \$ 8900 \
\hline \text { In the future with the regulation: } & \$ 9700 \
\hline \text { In the future without the regulation: } & \$ 9200 \
\hline
\end{array}$$ 
Determine the before/after costs of the regulation and the with/without costs of the regulation.Which of these two costs best reflects the true cost of the regulation?

Quizplus · Accepted Answer

The Answer of Consider the following illustrative numbers,applying to a manufacturing firm for which a pollution-control regulation has been proposed:
 $$\begin{array} { | l | l | } 
\hline  { \text { Estimated Production Costs: } } \
\hline \text { Before the regulation: } & \$ 8900 \
\hline \text { In the future with the regulation: } & \$ 9700 \
\hline \text { In the future without the regulation: } & \$ 9200 \
\hline
\end{array}$$ 
Determine the before/after costs of the regulation and the with/without costs of the regulation.Which of these two costs best reflects the true cost of the regulation?

Consider the Following Illustrative Numbers,applying to a Manufacturing Firm for Which