Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 18-2E_1 MAC_2 12- E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED= .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit subsidy to abatement equal to $ Answer:

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 18-2E_1 MAC_2 12- E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED= .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit subsidy to abatement equal to $ Answer:

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter16: Probabilistic Inventory Models

Section16.10: Exchange Curves

Problem 1P

See similar textbooks

Similar questions

You are trying to estimate NPV of profit for a newcomputer product, which you are confident will sell for tenyears. You are given the following information.The hurdle rate is 15%. Assume end of year for profits.The total cost of developing the product will be spreadequally over the product’s life. Total development cost willbe between $2 billion and $11 billion. There is a 25% chancethat total fixed cost is $3 billion or less, a 50% chance of $6billion or less, and a 75% chance of $9 billion or less.The total year 1 market size (in terms of annual unitsales) is unknown but is believed to be between 0 and 600million units. Unit sales of 100 million and 500 million areequally likely. Unit sales of 200 million and 400 million areequally likely, and are 4 times as likely as sales of 100million. Sales of 300 million are 5 times as likely as salesof 100 million. Each year, market growth is expected toaverage 5%, and during each year we are 95% sure thatmarket growth will be between 3% and…
Problem 3: Consider the ICT bot in this 3*3 grid. Y X 1 2 3 1 S 2 3 * E S is the location where the robot starts.E is the end location where the robot must find * and carry to E. The robot can perform two actions: move and retrieve_star. It can move in 4 directions 1 adjacent cell at a time, from (x,y) to (x+1,y), (x-1,y),(x,y+1), and (x,y-1) as long as it remains on the 3*3 grid. Upon each grid, the robot will receive the signal from its sensor if * is in the current grid or not. If * is in the current grid, it can retrieve * using the retrieve_star command. 1) Design a classical representation for the current planning problem.
Suppose that each firm in a perfectly competitive market has a cost of TC = 75 + 500Q - 5Q2 + 0.5Q3 Determine if this is a short-run or long-run cost function (motivate):
Question 1: pertains to the Cherokee School District scenario below. The school board for the Cherokee School District has made the decision to purchase 1370additional Macintosh computers for computer laboratories in all its schools. Based on the past experience, the school board has directed that these computers should be purchased from some combination of three companies Mc Comp, EduElectronics, and Macwin. In all three cases, the companies charge a discounted variable cost per computer and a fixed delivery and installation costs for these large sales to school districts. The table below shows these charges as well as the capacity (the maximum number of computers that can be sold from the limited inventory) for each of the companies.CapacityFixed cost variable costMcComp710 $45,000 $750 EduElectronics690$35,000$780 Macwin1000$50,000 $700 The school board wants to know the optimal plan for meeting its computer needs. 1.Identify the type of integer programming framework (Total Integer,…
What is the completeness and optimality of HC?[
Based on the following scenario, what is the total cost for the order of the optimal solution? Southeastern University must purchase 1000 dorm bunk beds from up to five vendors (they can chose 1-5 of the vendors). Vendor 1 charges $500 per bed but there delivery is free. Vendor 2 charges $350 per bed plus a total delivery charge of $4,000. Vendor 3 charges $250 per bed plus a total delivery charge of $6,000. Vendor 4 charges $300 per bed plus a total delivery charge of $4,500. Vendor 5 charges $225 per bed plus a total delivery charge of $8,000. Vendor 1 will sell the university at most 600 beds; vendor 2, at most 900; and vendor 3, at most 400; vendor 4, at most 550, and vendor 5; at most 700. The minimum order from any vendor is 200 beds. Determine how to minimize the costs of purchasing the needed beds.
A blood bank wants to determine the least expensive way to transport available blood donations from Pittsburgh and Staunton to hospitals in Charleston, Roanoke, Richmond, Norfolk, and Suffolk. The supply and demand for donated blood is shown in the figure along with the unit cost of shipping along each possible arc. Provide the complete linear programing formulation. Clearly specify decision variables, objective function and constraints. Build a model in Excel and paste a screenshot here. Use “FORMULATEXT” in your model to show calculations. According to Excel Solver, what is the optimal transportation plan for blood bank? What is the minimum total shipping cost?
If you have a column of cash flows from years 0 to n and you wish to calculate the present worth of the cash flows. You could use the following EXCEL function(s) for solving the problem with an excel spread sheet: None of the above Maximize EUAB Maximize NPW Maximize (EUAB - EUAC) Maximize PW of Benefits
Question to Hi there straightforward checkbook balancer that would include a succession of stores (positive drifting point values) and issuances (negative drifting point values) ended by a 0. It would yield the exchange type, the sum and the running equilibrium for every section. Expect the underlying equilibrium of 0. Guarantee that the gave check won't bounce...
Suppose that in response to concerns about identity theft and ransomware, the federal government bans all cryptocurrencies (e.g., bitcoin). (a) Use the supply and demand for money model to analyze the effect on the law on the price level and the value of money. Be sure to label the axes of your diagram and indicate any shifts in supply and/or demand by using a “1” next to the “D” or the “S.” (b) Suppose the Fed acts to restore the initial price level. What does the Fed do? Show this on your diagram. Label the change “b.”
Based on Spencer et al. (1990). When you lease 800 phone numbers from AT&T for telemarketing, AT&T uses an optimization model to tell you where you should locate calling centers to minimize your operating costs over a 10-year horizon. To illustrate the model, suppose you are considering seven calling center locations: Boston, New York, Charlotte, Dallas, Chicago, Los Angeles, and Omaha. You know the average cost incurred if a telemarketing call is made from any of these cities to any region of the country. You also know the hourly wage that you must pay workers in each city. This information is listed in the file P06_85.xlsx. Assume that an average call requires four minutes of labor. You make calls 250 days per year, and the average number of calls made per day to each region of the country is listed in the same file. The cost of building a calling center in each possible location is also listed in this file. Each calling center can make up to 5000 calls per day. Given this…
Draw a decision tree given problem below. A businessman must decide whether to open a new mini grocery branch or simply extend the number of hours of its operation on its existing branch with a payoff of Php150,000. According to his friend, demand at a new location can either be low or high, which he probabilities are estimated to be 35% and 65%, respectively. If a new branch is opened and demand proves to be high, the businessman may choose to operate 24hrs (payoff is Php350, 000) or to operate 12hrs (payoff is Php200,000). If a new branch is opened and demand proves to be low, there is no need to operate on a 24-hr basis but instead, they will just stick to 12-hr operation with payoff of Php100,000 or enhance marketing strategy through advertising. Projected response to advertising may either be favorable or not favorable, with estimated probabilities of 40% and 60%, respectively. If demand is favorable, the payoff grows to Php310,000 and if the response in unfavorable, the payoff is…