Econ 101 Winter 2010 Lecture 18

Econ 101 Winter 2010 Lecture 18 - Economics 101...

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Click to edit Master subtitle style Lecture 1 Economics 101 Microeconomics University of Michigan Winter 2010 Lecture 18
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Lecture 1 22 Chapter 5 of text Available on CTools No quiz this week in discussion Really…there is no quiz this week… Reading Problem Set 10
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Lecture 1 Abatement Costs Pollution abatement can be tackled on two margins: n Reduce output of the good with which the pollution is associated n Reduce the amount of pollution produced with each unit of the good Reducing output of the good is costly to society: n Deprive consumers the benefits of consuming the good n May be less costly to achieve the reduction in pollution by working on the
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Lecture 1 Minimizing abatement costs 44 Total Quantity of Abatement Desired QA 0 MCA MCB QB 0 $/unit abated $/unit abated MCA MCB MCA MCB QA* QB*
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Lecture 1 Minimizing abatement costs Using pollution permits, polluters have the incentive to find the cheapest methods of pollution abatement n Polluters with high MCabatement buy permits
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This note was uploaded on 04/20/2010 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

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Econ 101 Winter 2010 Lecture 18 - Economics 101...

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