Final answer:
Calculating marginal costs and benefits from given data allows determination of the optimal level of sewage emissions. Identifying this level helps in minimizing costs by avoiding spending on reductions that exceed the benefits. Ensuring operations near the optimal level is vital for cost-efficiency.
Step-by-step explanation:
To reduce costs using the information in requirement 4, one would have to analyze the marginal costs and marginal benefits of reducing sewage emissions as detailed in Table 12.13. By calculating these marginal costs and marginal benefits, you can identify the point where the benefit of reducing one additional unit of sewage emission equals the cost. This point represents the optimal level of sewage for the city, as any further reduction would result in higher costs than benefits. Ensuring that operations remain at or close to this optimal level maximizes efficiency and minimizes unnecessary expenditures.
In general, imperfect information can influence the decisions of consumers and producers, leading to a market outcome where the price, quantity, and quality of goods and services may not reflect their true value or cost. Proactively seeking accurate and complete information can help firms make better decisions, allocate resources more efficiently, and reduce such risks associated with imperfect information.