Please, Provide an Explanation for the Ranges/Point in the Follow (Encircled Below in Red. What Do the Ranges/Point Refer To & H They Calculated?) With Z representing the Level of Mitigation (Z): Marshland, MB = 3-Z Dampland, MB=4-2Z Wetland, MB 11-Z = The Marginal Cost of Flood Mitigation (MC): MC=2+12Z a. What is the Socially Optimal Level of Z(Zopt)? Answer: From 0-2 MSB = [(3- Z) + (4-2Z) + (11 - Z)] = [(3+ 4+ 11)-(Z+2Z+Z)] = 18-4Z From 2-3 MSB = (3- Z) + (11 - Z) = [(3+11)-(Z+Z)] = 14-2Z From 3-10-MSB = 11 - Z @11MSB=0
Please, Provide an Explanation for the Ranges/Point in the Follow (Encircled Below in Red. What Do the Ranges/Point Refer To & H They Calculated?) With Z representing the Level of Mitigation (Z): Marshland, MB = 3-Z Dampland, MB=4-2Z Wetland, MB 11-Z = The Marginal Cost of Flood Mitigation (MC): MC=2+12Z a. What is the Socially Optimal Level of Z(Zopt)? Answer: From 0-2 MSB = [(3- Z) + (4-2Z) + (11 - Z)] = [(3+ 4+ 11)-(Z+2Z+Z)] = 18-4Z From 2-3 MSB = (3- Z) + (11 - Z) = [(3+11)-(Z+Z)] = 14-2Z From 3-10-MSB = 11 - Z @11MSB=0
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...
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