please solve part 5,6 and 7 [1] A benefit-cost analysis has been conducted for water quality regulation. Consider themarginal benefit and marginal cost curves for water quality (q):MB = 20 - 24MC = 8The economic situation is illustrated in the figure:20MBK8MCNLMquality101. What is the optimal amount of water quality?2. What is the geometric area that represents the total benefit of the optimal amount of waterquality?3. What is the geometric area that represents the total cost of the optimal amount of waterquality?4. What is the geometric area that represents the net benefit of the optimal amount of waterquality?5. What is the dollar value of each geometric area? (a matching question)6. What is the net benefit of the optimal amount of water quality?7. What is the net benefit of pristine water quality (q=10)?6.%24

Marginal benefit is the change in total benefit when an additional unit of product is consumed.…

benefit-cost analysis has been conducted for water quality regulation. Consider the marginal benefit and marginal cost curves for water quality (q): MB = 20-2q MC = 8 The economic situation is illustrated in the figure: $ 20 K MB L 6 M 10 MC quality 1. What is the optimal amount of water quality? 2. What is the geometric area that represents the total benefit of the optimal amount of wate quality? 3. What is the geometric area that represents the total cost of the optimal amount of water quality? 4. What is the geometric area that represents the net benefit of the optimal amount of water quality? 5. What is the dollar value of each geometric area? (a matching question) 6. What is the net benefit of the optimal amount of water quality? 7. What is the net benefit of pristine water quality (a-101?

benefit-cost analysis has been conducted for water quality regulation. Consider the marginal benefit and marginal cost curves for water quality (q): MB = 20-2q MC = 8 The economic situation is illustrated in the figure: $ 20 K MB L 6 M 10 MC quality 1. What is the optimal amount of water quality? 2. What is the geometric area that represents the total benefit of the optimal amount of wate quality? 3. What is the geometric area that represents the total cost of the optimal amount of water quality? 4. What is the geometric area that represents the net benefit of the optimal amount of water quality? 5. What is the dollar value of each geometric area? (a matching question) 6. What is the net benefit of the optimal amount of water quality? 7. What is the net benefit of pristine water quality (a-101?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 9SQP

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