Managerial Economics

posted by .

Looking at controlling government roles in managing health risks in society it faces from exposure to environmental pollution. One major problem that was examined was the cleanup of hazardous waste sites. Some people were extremely critical of policymakers who wish to see waste sites 100 percent clean. (a)Explain using the theory of optimization and a graph, the circumstances under which a waste site could be made "too clean" (Good answers are dispassionate and employ economic analysis) (b) If society can enjoy virtually all the health benefits of cleaning up a waste site for only a "small fraction" of the total cost of completely cleaning a site. Using graphical analysis, illustrate this situation (hint: Draw MB and MC curves with shapes that specifically illustrate this situation)

your hint is, in my opinion, the solution; draw MB and MC curves. When doing envirnomental cleanup, one naturally thinks of doing the cheap and easy things first. This, very often, gets rid of a large percent of the problem. The next things that are done are harder and more expensive, but, ironically, don't eliminate as much of the problem as the first simple solution. Finally, often a polutant is 99.9% gone. However getting that last 1/10 of 1% is extremely expensive. Yet, how important is it to get rid of that last amount?
This said, we can then draw a typical MB, MC curves. MB starts high and is downward sloping, often shaped like a concave lens. MC starts very low and is a rising curve. It is often almost flat at the start and very steep at the end. Finally, total cost is the area under the MC curve and total benefit is the area under the MB curve.

In drawing what does it actually look like, I am not getting it.Help
MB MC curves. What is a concave shape?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Economics

    I am trying to understand how to variate between MC and MB using the theory of optimization the circumstance which a waste site could be made too clean. Note: Good answers are dispassionate and employ economic analysis. Draw a graph, …
  2. environ. probl-please revise

    Discuss an environmental problem that you feel is significant in your town or city. What are some causes?
  3. environmental

    What problems may arise from mixing household hazardous waste with other domestic waste?
  4. chemistry acids and bases

    which solution is potentially more hazardous to your eyes: .1M HCl or .1M NaOH?
  5. Environmental Science

    Please check my answers. 29. In two or three well-developed paragraphs, explain how pollutin can come from both natural sources and from human activities. Provide examples of each. It is true that pollution can come from both natural …
  6. PreCalc

    Let x = the number of non-federal hazardous waste sites and let y = the number of federal hazardous waste sites. The ordered pairs (x, y) below represent the number of sites in eleven states with at least 11, but less than 15 total …
  7. managerial economics

    U.S.Supreme Court Justice examines government's role in controlling & managing health risks. One major problem examined is cleanup of hazardous waste sites. He wish to see waste sites 100% clean. a. Explain, using theory of optimization …
  8. Healthcare Law & Ethics

    why is the current health care system is in turmoil?
  9. Environmental Engineering

    The EPA requires hazardous waste incinerators to meet a standard of 99.99% destruction and removal of hazardous constituents injected into the incinerator. Determine the allowable quantity of contaminant in the exit stream if the incinerator …
  10. Managerial Economics

    Since dry cleaning produces air pollution, a small town with two dry cleaning companies has decided to regulate the dry cleaning industry. The two dry cleaning companies, Company A and Company B, currently produce 350 units of air …

More Similar Questions