Business, 19.02.2021 04:40 rajenkins79

Consider a chemical factory that is situated next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows: Quantity of emissions (Q) 100 200 300 400 500 600 700 800 900 MB to factory 320 280 240 200 160 120 80 40 0 MC to farmer 110 130 150 170 190 210 230 250 270 Calculate the total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions. A. $63000 B. $62000 C. $60750 D. $61000

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Answer from: jahmanilittlejotz1pe

Marginal Benefits of Emissions

Total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions is $30,000 when the quantity of emission is 200 tons.

Explanation:

a) Data and Calculations:

Quantity of Marginal Marginal Total Net Benefit

emissions (Q) Benefits Cost or Cost

100 320 110 21,000

200 280 130 30,000

300 240 150 27,000

400 200 170 12,000

500 160 190 -15,000

600 120 210 -54,000

700 80 230 -105,000

800 40 250 -168,000

900 0 270 -243,000

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Consider a chemical factory that is situated next to a farm. Airborne emissions from the chemical fa...

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