Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur di

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Assume That Scientific Studies Provide You With The Following Information Concerning The Benefits And Costs Of Sulfur Di 1 (82.44 KiB) Viewed 9 times

Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions: Benefits of abating (reducing) emissions: Costs of abating emissions: MB = 400-20A MC = 200 + 5A where A is the quantity abated in millions of tons and the benefits and costs are given in dollars per ton. What is the socially efficient level of emissions abatement? (Enter your response rounded to two decimal places.) The socially efficient level of emissions abatement is What are the marginal benefit and marginal cost of abatement at the socially efficient level of abatement? The marginal benefit equals the marginal cost, which is $240. (Enter your response rounded to two decimal places.) What happens to net social benefits (benefits minus costs) if you abate one million more tons than the efficient level? One million fewer? If you abate one million more tons, the marginal cost of abatement will be than the marginal benefit and net social benefit will than the marginal benefit and net social benefit will one million fewer tons, the marginal cost of abatement will be tons. ▼. If you abate Why is it socially efficient to set marginal benefits equal to marginal costs rather than abating until total benefits equal total costs? O A. The objective is to maximize net benefit, which is marginal benefit minus marginal cost. Dollars should be allocated to abatement until the benefit of the last unit of abatement is slightly less than the cost of the last unit of abatement. O B. The objective is to maximize net benefit, which is total benefit minus total cost. Dollars should be allocated to abatement until the benefit of the last unit of abatement is slightly less than the cost of the last unit of abatement. O C. The objective is to maximize net benefit, which is marginal benefit minus marginal cost. Dollars should be allocated to abatement only so long as the benefit of the last unit of abatement is greater than or equal to the cost of the last unit of abatement. O D. The objective is to maximize net benefit, which is total benefit minus total cost. Dollars should be allocated to abatement only so long as the benefit of the last unit of abatement is greater than or equal to the cost of the last unit of abatement.