Benefits , costs
• WTP – demand• Benefit – area under the curve• Opportunity Cost• Marginal Cost• Equimarginal cost
McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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Economic Effficiency
• Efficiency• Equity• Market system• Social cost – External cost• Public goods
– Private cost
McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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Economics of “Quality”
• Pollution control– Damage function• Pollution categories – source, dispersion• Ambient, emissions
– Abatement cost function
• “Socially efficient” level of pollution!
McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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McGraw-Hill/Irwin
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