Figure 15.8 Consider a chemical plant that discharges toxic waste into a nearby waterway.To reduce the emissions of toxic waste, the firm can install pollution abatement devices.Figure 15.8 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 15.8.Suppose the emissions reduction target is currently established at 8 million tons.What is the area that represents the cost of eliminating an additional 1 million tons?

Question

Figure 15.8  Consider a chemical plant that discharges toxic waste into a nearby waterway.To reduce the emissions of toxic waste, the firm can install pollution abatement devices.Figure 15.8 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 15.8.Suppose the emissions reduction target is currently established at 8 million tons.What is the area that represents the cost of eliminating an additional 1 million tons?

Quizplus · Accepted Answer

The area that represents the cost of eliminating an additional 1 million tons is typically the area under the marginal cost curve for that additional reduction, which is represented by area A.

Figure 158 Consider a Chemical Plant That Discharges Toxic Waste