Problem
Suppose that prior to the land restrictions of 1984, the market for land disposal was modeled as follows: D = MPB = 80 - 2L S = MPC = 20 + 2L
where L is thousands of tons of landfilled hazardous waste, and the dollar values are per ton.
When the 1984 restrictions decreased the supply of land disposal services, assume that the marginal private costs (MPC) of production decreased to MPC′ = 32 + 2L.
a. Based on this model, quantify the decrease in land disposal accomplished by the restrictions.
b. Graphically show the qualitative effect on total external costs in the land disposal market.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.