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Explain why a society usually would not determine that a degree of 0 per cent air cleanliness is optimal.

Short Answer

Expert verified

The socially ideal degree of contamination or level of air tidiness happens where the marginal cost of contamination decrease is equivalent to the marginal cost of contamination reduction.

Step by step solution

01

Introduction

At points lower than that the marginal benefit from clean air increments than the marginal benefit from cleaning the air. The socially helpful degree of contamination or clear air is given where the marginal benefit is equivalent to the marginal cost. As it is difficult to live in a too grimy climate, having a too perfect environment is likewise unrealistic.

02

Explanation

Contamination can never be headed to anything. A 100% level of air tidiness would suggest no level of contamination. On the off chance that we attempt to accomplish a 100%level of air tidiness, this would imply that the cost of this decrease in contamination surpasses the benefit from this decrease. Consequently, it isn't doable to have a 100% level of air tidiness. Besides, our regular framework has the ability to absorb some level of contamination. Consequently, some level of contamination is consistently ideal.

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Most popular questions from this chapter

Take a look at Figure 31-2. Suppose that initially, society experiences a degree of air cleanliness that is lower than Q0. What would be true of the marginal benefit in relation to the marginal cost, and why would this fact induce society to increase the degree of air cleanliness toward Q0?

Explain how economists can conceptually determine the optimal quantity of pollution.

Suppose that a new chief of the government agency discussed in the problem decides to reduce the number of pollution allowances that firms are permitted to own. Evaluate the effects this policy change will have on the market price of pollution allowances and discuss whether the policy appears to be fully consistent with the original intent of creating the market for these allowances.

The market price of insecticide is initially \(10per unit. To address a negative externality in this market, the government decides to charge producers of insecticide for the privilege of polluting during the production process. A fee that fully takes into account the social costs of pollution is determined, and once it is put into effect, the market supply curve for insecticide shifts upward by \)4per unit. The market price of insecticide also increases, to$12 per unit. What fee is the government charging insecticide manufacturers?

The following table displays hypothetical annual total costs and total benefits of conserving wild tigers at several possible worldwide tiger population levels.


a. Calculate the marginal costs and benefits.

b. Given the data, what is the socially optimal world population of wild tigers?

c. Suppose that tiger farming is legalized and that this has the effect of reducing the marginal cost of tiger conservation by$15million for each 2000tiger population increment in the table. What is the new socially optimal population of wild tigers?

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