Question

Arial 2. (15 points, as indicated) Suppose the MSC of cleaning Puget Sound is modeled as MSC-10+1.4A, where A is the percentage of phosphorus abated, and MSC is measured in millions of dollars. a. (10 points) Using the MSC, find the incremental costs of a policy initiative that increases the phosphorus abatement level from its baseline of 30 percent to 45 percent. Create a graph and use that to explain your solution. Label clearly where incremental costs are shown in your graph. b. (5 points) Using calculus (integration) you can define the TSC (really just the total variable social cost) as TSC = 10A +0.7A2 Repeat part (a) using the TSC function directly. Draw a graph and clearly label

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Answer 1

MSCe 101-4A dl MSC 3043 ves Tota ost The (13+52) x SC 196.5 37.5