Problem 5 Based on the graph below, explain what would happen to the optimal level of abatement if there were a significant improvement in the abatement technology that cleaned up nitrate contamination in groundwater. Let's say that the fuel use was significantly reduced as a result of the machinery that was used. In answering the question you will need to: • Determine which graph(s) are impacted; Show the change(s) in the impacted graph(s); Explain the direction of the change(s); and, • Explain why the change in the optimal level of abatement is, in fact, optimal. Be clear as to the underlying objectives of the optimal contamination policy and make sure to explain any possible changes in the graph by using interpretations of relevant values. You will need to add an extra sheet of paper to answer the question. Dollars (Millions) 4.5 3.5 2.5 1.5 1 0.5 0.5 Nitrate Contamination (Mg/L) 1.5 2

Problem 5 Based on the graph below, explain what would happen to the optimal level of abatement if there were a significant improvement in the abatement technology that cleaned up nitrate contamination in groundwater. Let's say that the fuel use was significantly reduced as a result of the machinery that was used. In answering the question you will need to: • Determine which graph(s) are impacted; Show the change(s) in the impacted graph(s); Explain the direction of the change(s); and, • Explain why the change in the optimal level of abatement is, in fact, optimal. Be clear as to the underlying objectives of the optimal contamination policy and make sure to explain any possible changes in the graph by using interpretations of relevant values. You will need to add an extra sheet of paper to answer the question. Dollars (Millions) 4.5 3.5 2.5 1.5 1 0.5 0.5 Nitrate Contamination (Mg/L) 1.5 2

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section14.2: Achieving Environmental Efficiency

Problem 2.2GE

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