Business, 30.09.2019 23:00 25yurasekth33

Suppose a state is considering improving river water quality downstream from a wastewater treatment facility. the water quality is indicated by q, with initial quality q = 0. the beneficiaries of an improvement are (i) 100 people who fish, who each have demand for water quality given by q = 100 − 2p; and (ii) 50 people who boat, who each have demand q = 30 − p. the (total) social cost of improving the wastewater treatment is t sc = 1500q + 50q 2 . (a) what is the equation for the marginal social benefit of improvements in water quality, q? (b) what is the equation for the marginal social cost of q? (c) what is the efficient improvement in water quality for the state to choose? (d) what is the net social benefit of the improvement in (c)? illustrate and calculate a number. (e) do the people who boat and the people who fish value the last unit of improvement in water pollution the same amount or different amounts? what is each group’s marginal valuation of water pollution at the efficient quantity

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Suppose a state is considering improving river water quality downstream from a wastewater treatment...

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