d Levying a tax on mércury emissions. UESTION 4 Table 1 The following table show
ID: 1108984 • Letter: D
Question
d Levying a tax on mércury emissions. UESTION 4 Table 1 The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate tons of chromium from their production processes. For example, for Firm A to eliminate one ton of chromium, it woul cost $83, and for Firm A to eliminate a second ton of chromium it would cost an additional $84. Firm Ton to be eliminated First ton econd ton hird torn ourth ton 84 90 97 57 68 70 35 40 46 50 62 71 91 Refer to Table 1. If the government charged a tax or fee of $85 per ton of chromium, how many tons of chromium would the firms eliminate altogether? O b. 8 QUESTION 5 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All AnsExplanation / Answer
c) 5 units
At tax of $ 85 leads to reduction of chromium by 2 units by Firm A because additional production creates cost greater than tax.
Firm B reduces 1 unit
Firm C does not reduce any unit
Firm D reduces 2 units.
Total reduction = 2 + 1 + 0 + 2 = 5
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