Gobbet 9 - Net Benefits

Gobbet 9 - Net Benefits - equations you found in earlier...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Gobbet #9: Net Benefits and Marginal Net Benefits (These problems are adapted from Callan and Thomas: Environmental Economics and Management , 2004) Consider the supply and demand schedules from Gobbet #4: PRICE (P) Quantity Demanded by Consumers (bottles/month) Quantity Supplied by Producers (bottles/month) $0.50 1,100 100 1.00 1,050 300 1.50 1,000 500 2.00 950 700 2.50 900 900 3.00 850 1,100 3.50 800 1,300 4.00 750 1,500 4.50 700 1,700 5.00 650 1,900 Draw the marginal net benefits curve using the information from this table, and the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: equations you found in earlier gobbets. Find the equation for the marginal net benefits function. Draw the marginal net benefits curve and the pollution externality damages on the same graph (using the information you found in Gobbet #7). Show and derive the corresponding social optimum. Why is this a social optimum?...
View Full Document

This note was uploaded on 12/16/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell.

Ask a homework question - tutors are online