Unformatted text preview: Economics 110-‐02: Intro to Economic Theory Wesleyan University Fall 2013 Professor Damien Sheehan-‐Connor Problem Set 6 1. Suppose that the marginal social benefit of emitting a ton of carbon dioxide when the current quantity of carbon dioxide being emitted is tons is given by = 200 − . Similarly, the marginal social cost is given by =
10 + 0.5. a. What quantity of carbon dioxide would be emitted in the absence of any regulation or tax on its emission? b. What would be the socially optimal level of carbon dioxide emissions? c. What level of Pigovian tax would result in the socially optimal quantity of emissions? 2. Textbook Problem, Chapter 16, Problem 1 3. Textbook Problem, Chapter 16, Problem 8 4. Textbook Problem, Chapter 17, Problem 1 5. Textbook Problem, Chapter 17, Problem 4 6. Textbook Problem, Chapter 18, Problem 2 7. Textbook Problem, Chapter 18, Problem 8 ...
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- Fall '08
- Economics, carbon dioxide