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Suppose That the Marginal Social Benefit Associated with Drinking Water

Question 41

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Suppose that the Marginal Social Benefit associated with drinking water quality is estimated to be MSB = 100 - 0.5A, where A is the percentage of mercury abated from drinking water and MSB is measured in millions of dollars. Find the total social benefit (TSB) associated with a federal policy that increases mercury abatement from 20 percent to 30 percent.

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The TSB associated with some abatement ...

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