Suppose a coal mine causes contamination to the local aquifer, imposing $2 per ...
✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
Suppose a coal mine causes contamination to the local aquifer, imposing $2 per metric ton in healthcare costs on the nearby community. The mine generates $900,000 in revenue daily, but if it were producing the socially optimal quantity of coal and charging the same price of $100 per metric ton, it would bring in $180,000 less per day.
Calculate the total amount of daily external cost at
the socially optimal equilibrium.
Note: Please do not put symbols ($ or , ) in your response.$Want instant access to all verified answers on moodle.telt.unsw.edu.au?
Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!