Figure 11.10 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 11.10 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 11.10.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 11.10  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 11.10 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 11.10.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 A represents the marginal cost of reducing emissions by an additional 1 million tons beyond the current target.

Figure 1110 Consider a Chemical Plant That Discharges Toxic Waste