11:373:101 Lecture Notes - Lecture 13: Edmund Muskie

• School: Rutgers University
• Department: Environmental and Business Economics
• Course: 11:373:101
• Professor: P Gottlieb

Document Summary

Topic 11 coping with failures of markets 2. We cannot give anyone the option of polluting for a fee . Total oc to society of reducing the so2 = . Brewery pays to the other two firms for extra permits. A transfer, not a real cost to society. Four tons of so2 are emitted (cid:1445)for free,(cid:1446) But brewery"s final two tons carry a mc of each. Brewery willing to pay up to ,250 for the two additional permits.