Explain why a society usually would not determine that a degree of 0 per cent air cleanliness is optimal.

Short Answer

Expert verified

The socially ideal degree of contamination or level of air tidiness happens where the marginal cost of contamination decrease is equivalent to the marginal cost of contamination reduction.

Step by step solution

01

Introduction

At points lower than that the marginal benefit from clean air increments than the marginal benefit from cleaning the air. The socially helpful degree of contamination or clear air is given where the marginal benefit is equivalent to the marginal cost. As it is difficult to live in a too grimy climate, having a too perfect environment is likewise unrealistic.

02

Explanation

Contamination can never be headed to anything. A 100% level of air tidiness would suggest no level of contamination. On the off chance that we attempt to accomplish a 100%level of air tidiness, this would imply that the cost of this decrease in contamination surpasses the benefit from this decrease. Consequently, it isn't doable to have a 100% level of air tidiness. Besides, our regular framework has the ability to absorb some level of contamination. Consequently, some level of contamination is consistently ideal.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why might allowing profit-maximizing firms to manage the hunting of particular endangered animals potentially help to ensure the animals' species would not disappear? (Hint: Would a company continue to generate profits from selling hunting rights if it allowed hunters to kill all of the animals that it manages?)

One possible method for reducing emissions of greenhouse gases such as carbon dioxide is to inject the gases into deep saltwater-laden rock formations, where they would be trapped for thousands of years. Suppose that the federal government provides a fixed per-unit subsidy to firms that utilize this technology in West Virginia and other locales where such rock formations are known to exist.

a. Consider the effects of the government subsidy on the production and sale of equipment that injects greenhouse gases into underground rock formations. What happens to the market clearing price of such pollution abatement equipment?

b. Who pays to achieve the results discussed in part (a)?

The following table displays hypothetical annual total costs and total benefits of conserving wild tigers at several possible worldwide tiger population levels.


a. Calculate the marginal costs and benefits.

b. Given the data, what is the socially optimal world population of wild tigers?

c. Suppose that tiger farming is legalized and that this has the effect of reducing the marginal cost of tiger conservation by$15million for each 2000tiger population increment in the table. What is the new socially optimal population of wild tigers?

A government agency caps aggregate emissions of an air pollutant within its borders, establishes initial pollution allowances across all firms, and grants the firms the right to trade these allowances among themselves. The demand and supply curves for these pollution allowances have normal shapes and intersect at a positive price. Explain in your own words the government's likely goal in establishing this private market for pollution allowances.

What is the specific reason that accounting for externalities and thereby shifting the market supply curve causes the equilibrium quantity of Good X to decline from Q1 to Q2?

See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free