In accordance with the 1990 Clean Air Act, the state imposes a pollution limit on the market for steel manufacturing shown on the graph below. Place the line segment labeled "Pollution limit" at the optimal pollution limit.

In accordance with the 1990 Clean Air Act, the state imposes a pollution limit on the market for steel manufacturing shown on the graph below. Place the line segment labeled "Pollution limit" at the optimal pollution limit.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 43P: A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city....

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Need clear diagram

In accordance with the 1990 Clean Air Act, the state imposes a pollution limit on the market for steel manufacturing shown on
the graph below. Place the line segment labeled "Pollution limit" at the optimal pollution limit.
Price and cost ($ per ton)
10
9
8
7
6
2
1
0
0
A Pollution limit B
2
14
4 6 8 10 12
Quantity in thousands of tons
Marginal social cost
Marginal cost
Demand = marginal benefit
16
18 20

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