CA Condor Preservation 5 Questions below refer to the follow

CA Condor Preservation 5. Questions below refer to the following, a summary table for regulations California Condor designed to improve Option A prohibits lead ammunition within Condor habitat, Option B prohibits lead ammo and modifies wind turbines to prevent Condor enforcement to deaths and Option C lead ammo, modifies wind turbines and increases law ts table prevent poaching. The total costs and benefits of the three options are given in the tollowing Between A, B and C, the efficient outcome is option a. B (Lead and C(Lead, Turbines A (Lead) Turbines) and Police) Total Benefits $1million S 3m b. The marginal cost of option B Total Costs s0.1m $2.3m $ 3m compared to option A is c Of the 3 options, optionhas the largest deadweight loss which equals S Efficient Abatement Table and Graph 6. The following table gives the total benefits and costs of different abatement technologies for a water treatment plant that removes a toxic chemical from waste water. Without treatment, 1000kg are dumped, and each treatment removes more and more of the chemical (they are sequential treatment C only works after A&B; have been applied): Kg of c Total Treatment MB released per year (health costs) 1000 500 200 50 abatement) costs No treatment Treatment A Treatment B Treatment C Treatment D $21,550 $6,550 $o $2,500 $5,500 $7,750 $8,750 $250 so Calculate the marginal benefit of abatement and the marginal cost of abatement for each abatement technology (A,B,C,D). Your number should reflect the additional benefit/cost of each treatment (don\'t do it on a per kilogram basis). a. b. Comparing MC and MB, which is the efficient treatment technology? Explain. For this graph, the quantity axis should be the kg of Graph the marginal benefit and marginal cost curves. pollution abated, and thus you will need to calculate the marginal benefits and marginal costs per kilogram for each technology. You should have a stairstep function because the MB and MC is constant within a given technology (ie. between 0 and 500kg for treatment A). c.

Solution

a) Benefits - Costs for
Option A = 0.9m
Option B = 0.7m
Option C = 0.5m

Since highest gains are for A, A is most efficient.

b) Marginal cost = Cost of Option B - Cost of Option A = 2.2m

c) C has the largest deadweight loss of 3 million.