Assignment:
A chemical factory is located next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows:
|
Quantity of emissions
|
100
|
200
|
300
|
400
|
500
|
600
|
700
|
800
|
900
|
|
Marginal benefit to factory ($000)
|
320
|
280
|
240
|
200
|
160
|
120
|
80
|
40
|
0
|
|
Marginal cost to farmer ($000)
|
110
|
130
|
150
|
170
|
190
|
210
|
230
|
250
|
270
|
- From an economic point of view, what is the best solution to this environmental conflict of interest? How might this solution be achieved? How should considerations of efficiency and equity be balanced in this case?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.