According to the Onondaga reservation located south of Syracuse , Lake Onondaga Is heavily polluted with Methyl Mercury due to the fact that Allied Chemical\ discharged around 16.5, 000 pounds of waste . Since then , efforts have been made to clean

According to the Onondaga reservation located south of Syracuse , Lake Onondaga Is heavily
polluted with Methyl Mercury due to the fact that Allied Chemical\
discharged around 16.5, 000 pounds of waste . Since then , efforts have been made to clean
up the lake establishing a water treatment plant . Environmental economist determine that
the Marginal Social Cost is estimated by the following function ."
MSC = 20 + 2 A.
Where A is the methyl mercury abated in thousand pounds*
In the decision making process the authorities must decide the cost of abating the
hazardous material . In 2017 it is estimated the amount abated will be A = 20 by the end of the
year . The likely projection for 2018 will be A = 25
Given this information determine the Incremental Cost of the
reservation from 2017 to 2018 ( Math Required , Show your work )
Hint : The Graph Below Will show you the area to be calculated
MISC = 20 + 2 A
MISE
5
10
15
20
25
30
35
Level of Abatement
Selected
The marginal social cost is given as
Answer :`
MSC = 20 + 2 A
A is the abatement level of Methyl Mercury level
When A is projected as 20 in 2017 and 25 in 2018 , the change in the
marginal social cost is given by*
MS[ 120 17 ) = 20 + 2* 20 = 60
MS[ 1 2018 ) = 20 + 2* 25 = 70
Hence the incremental cost or the additional cost for abatement is 170
– 6:01 = 10
Correct
Answer :"

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