An electricity generation company currently emits 99 tons of sulfur dioxide. Sulfur dioxide emissions contribute to respiratory illness and create acid rain when combined with other chemicals in the atmosphere. The table below shows the marginal cost of abatement, which increases as different abatement techniques are used. Quantity Abated (tons) Marginal Cost of Abatement per Ton 11 $5,000$⁢5,000 22 $8,000$⁢8,000 33 $15,000$⁢15,000 44 $20,000$⁢20,000 55 $30,000$⁢30,000 66 $42,000$⁢42,000 77 $56,000$⁢56,000 88 $80,000$⁢80,000 99 $135,000$⁢135,000 Suppose the government imposes a pollution tax of $44,000$⁢44,000 per ton of sulfur dioxide emitted. How many tons of sulfur dioxide will the company abate, and how many tons of sulfur dioxide will it emit? Write the exact answers. Do not round.

An electricity generation company currently emits 99 tons of sulfur dioxide. Sulfur dioxide emissions contribute to respiratory illness and create acid rain when combined with other chemicals in the atmosphere. The table below shows the marginal cost of abatement, which increases as different abatement techniques are used. Quantity Abated (tons) Marginal Cost of Abatement per Ton 11 $5,000$⁢5,000 22 $8,000$⁢8,000 33 $15,000$⁢15,000 44 $20,000$⁢20,000 55 $30,000$⁢30,000 66 $42,000$⁢42,000 77 $56,000$⁢56,000 88 $80,000$⁢80,000 99 $135,000$⁢135,000 Suppose the government imposes a pollution tax of $44,000$⁢44,000 per ton of sulfur dioxide emitted. How many tons of sulfur dioxide will the company abate, and how many tons of sulfur dioxide will it emit? Write the exact answers. Do not round.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2.2CE

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Quantity Abated (tons)	Marginal Cost of Abatement per Ton
11	$5,000$⁢5,000
22	$8,000$⁢8,000
33	$15,000$⁢15,000
44	$20,000$⁢20,000
55	$30,000$⁢30,000
66	$42,000$⁢42,000
77	$56,000$⁢56,000
88	$80,000$⁢80,000
99	$135,000$⁢135,000

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