A large urban hospital produces solid waste. The table below shows the hospital’s marginal cost of reducing waste and the marginal benefit to society of doing so.Tonnes of waste abatedMC($)MB($)1st100040002nd150038003rd200035004th300030005th450020006th7000MB($)a. Draw a scale diagram of the marginal costs and benefits of reducing solid waste.b. What is the socially optimal amount of waste to abate?c. What is the net benefit to society of abating the socially optimal amount of waste?d. What is the net benefit to society of abating the final tonne of waste if the hospital abates six tonnes?
A large urban hospital produces solid waste. The table below shows the hospital’s marginal cost of reducing waste and the marginal benefit to”
by | Mar 12, 2022 | Uncategorized
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