If Compressed Natural Gas (CNG) powers vehicles and is an almost pollution-free fuel. If factory equipped, vehicles can switch between using either CNG or ordinary gasoline. It costs under $4000 extra to buy such a factory-equipped auto. However, the auto industry makes little effort to promote the use of CNG. Instead, the auto industry is rushing to introduce battery-powered autos that use expensive, heavy and dangerous Lithium Ion batteries. Suppose the government sufficiently subsidized the installation of CNG pumps at public service stations. QUESION: Would the effect on demand for CNG powered autos INCREASE OR DECREASE?
Q: cenario 2A. There are three firms, A;B; and C that produce electricity. The first two firms have…
A: Socially efficient outcome occurs when marginal social benefit equals marginal social cost.
Q: Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the…
A: Public goods are the goods which are non-excludable and non-rival in nature. Non-excludable are the…
Q: The oil industry realizes their mistake and would now like to consider future generations. How much…
A:
Q: According to the Centers for Disease Control and Prevention, a 40-year-old woman has a 15 in 10,000…
A: Insurance is an agreement in which an insurer repays one more against misfortunes from explicit…
Q: This scenario pertains to microeconomics course-externalities focusing on Noise Pollution, which has…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider the following model of global climate change negotiations. For every unit of resources…
A: The optimal level of resources devoted towards reduction of greenhouse gases is achieved at the…
Q: What is the competitive equilibrium price of electricity (under this constraint)and what is the…
A: Given values in the Question are following -:…
Q: Carbon dioxide emissions have been linked to worsening climate conditions. The following table lists…
A: Public policies refer to a course of action taken by the government or other organizations to solve…
Q: There are three firms, A;B; and C that produce electricity. The first two firms have the same…
A: It is given that: Firms A, B, and C produce respectively 1, 2, and 3 cubic feet of carbon monoxide…
Q: Suppose the government wants to reduce the total pollution emitted by three local firms. Currently,…
A: Using the 1st method: that is if the govt tries to regulate each firm so that they produce only 2…
Q: 4b. The Parking Services Department on a small college campus has control of 1000 Student parking…
A: Pareto efficient allocations refer to those points deviating from which nobody can be made better…
Q: n efficient level of provision of a public good is achieved when the... a. Voters are satisfied…
A: Public goods are such goods that satisfy following two condition: Non Rival in consumption Non…
Q: The Chief Medical Officer has advised the government that consumption of widget-corn improves the…
A: Equilibrium output is occurred at the point where the demand and supply is equal. The equilibrium…
Q: Indicate whether the statement is true or false, and justify your answer.Suppose Fred imposes…
A: The socially efficient outcome can be achieved in a perfectly competitive market if there are zero…
Q: Find the social demand curve for the public good in this neighborhood. What is the y-intercept of…
A: The social demand curve for the public good can be calculated by adding the willingness to pay of…
Q: Your government, in response to the WHO’s declaration of a global pandemic, COVID-19 took the…
A: Since you posted multiple subpart question, we will answer first three subpart
Q: Suppose there are three individuals living in a community. Their demands for a public good are…
A: A public good is a good that is nonrival and nonexcludable. Nonrival implies that the consumption of…
Q: Suppose a political candidate criticizes a government pollution permit policy that she says lets…
A: The political candidate's argument disputes with standard economic idea because tradable pollution…
Q: many areas of the country, aquifers (pools of underground water) serve as the primary water source.…
A: Pay-off matrix reveals the possible benefit of the each person by selecting the different…
Q: There are three firms, A;B; and C that produce electricity. The first two firms have the same…
A: Given: Firm A produces electricity, the per mega watt cost of production is $2, the pollution…
Q: The value added of a producer is the O value of its total sales once externalities are accounted…
A: Answer- Need to find- The value-added of a producer is the Evaluating the options- 1. Value of its…
Q: Two firms can control emissions at the following marginal costs: MC;= $300q1, MC2=$100q2 where q1…
A: Marginal cost is the change in total cost due to the change in the quantity produced or input used.…
Q: 3. Individual versus social costs and benefits Аа Аа In addition to providing private benefit to the…
A: 3. According to the scenario, the society is earning benefit as a whole when providing private…
Q: Consider two consumers with the following demand functions for a public good. P1 = 10 - 0.1G P2 =…
A: Since you have asked multiple questions, we will answer the first question for you. If you want any…
Q: The Forest Service is responsible for maintaining our commons forests, and controlling responsible…
A: A project value proposition is a statement that shows tangible results that a customer gets from…
Q: Suppose that under the United States-Canada Air Quality Agreement, both countries agree to a…
A: Answers Under uniform abatement standard, all polluters abate equal amount of pollution. (A) If…
Q: Price elasticity of demand for cigarettes is relatively inelastic at low prices and relatively…
A: Price elasticity of demand measures the degree of responsiveness of the quantity demanded of the…
Q: Multiple choice 14. Mark is a Canadian lumberjack whose income increases from $1,200 per week to…
A: 14) "Income elasticity of demand indicate how much the units demanded of a good change when income…
Q: The government has decided to impose a pollution tax on coal burning power plants in an attempt to…
A: Given values: Number of industrial carbon emitters = 20 Tax cost to each plant = $6 millionAnnual…
Q: A local school administrator observes an increase in the number of flu cases in the public schools…
A: Externality refers to the external cost and benefits that are imposed on third parties without their…
Q: The mayor of Green City is considering whether to institute a Covid vaccine mandate for public…
A: There are two players in the game : Mayor , Fire Chief Mayor Has Two strategies : Mandate , Non -…
Q: One way governments can charge firms for pollution rights is by imposing a per-unit tax on…
A: The measure that depicts the benefit or cost being caused by the producer not being received or…
Q: V1. what are the limitations of PESTEL framework analysis?
A: PESTLE analysis: - PESTEL research is a summary of the tool used to identify the major (externàl)…
Q: Due to an increased number of patients seeking COVID-19 tests and counseling, the clinic and the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The previous analysis hinges on the government having good information regarding either the demand…
A: Tradable permits are instruments aimed at reducing pollution. A maximum permissible emission rate is…
Q: Suppose the local authorities wanted to achieve a more drastic reduction in total pollution of 75…
A: Introduction Here local authorities wants to reduce total pollution. a) Suppose 35 permits issues to…
Q: Carbon dioxide emissions have been linked to worsening climate conditions. The following table lists…
A: A negative externality / external cost are a type of spillover which imposes a cost on the third…
Q: The market for used sea kayaks has both a high-quality and low-quality variety. High-quality kayaks…
A: Dear Student as you have posted multiple questions but we can answer only 1 question at a time…
Q: The average cost of landscaping services for members of a condominium community is $350 per week.…
A: GIVEN The average cost of landscaping services for members of a condominium community is $350 per…
Q: Scenario 2A. There are three firms, A;B; and C that produce electricity. The first two firms have…
A: Given values in the question are following -:…
Q: There are three firms, A;B; and C that produce electricity. The first two firms have the same…
A: Given values in he Question are following -:…
Q: Scenario 2A. There are three firms, A;B; and C that produce electricity. The first two firms have…
A: The above question is based on the externality problem as firms are emitting pollution, therefore,…
Q: Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship…
A: Given that "Flu shots create a positive externality equal to $12 per shot". This implies the social…
Q: Occupational licensing is an example of an entry barrier that improves a country's standard of…
A: 1. Occupational licencing is a type of government regulation that requires a licence in order to…
If Compressed Natural Gas (CNG) powers vehicles and is an almost pollution-free fuel. If factory equipped, vehicles can switch between using either CNG or ordinary gasoline. It costs under $4000 extra to buy such a factory-equipped auto. However, the auto industry makes little effort to promote the use of CNG. Instead, the auto industry is rushing to introduce battery-powered autos that use expensive, heavy and dangerous Lithium Ion batteries. Suppose the government sufficiently subsidized the installation of CNG pumps at public service stations.
QUESION: Would the effect on
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old. 5 If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is…The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old.If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is therefore…Suppose the local authorities wanted to achieve a more drastic reduction in total pollution of 75 tons in the scenario described above. They want to do so via the introduction of a tradable pollution permits system whereby, each permit would allow a power plant to emit one ton of SO2 annually at no cost, but a power plant’s emissions may not exceed it’s permits. The authorities must will distribute 75 permits (to achieve the 150 - 75 = 75 ton reduction). Recall that prior to the policy, each plant is emitting 75 tons. (a) If the regulator issues 35 permits to firm 1 and 40 permits to firm 2, without trading, how much would each firm have to spend to comply with the regulation? Recall that each firm must abate the pollution for which they do not hold permits. i.e. q1 = 75 − p 1 where p 1 is the number of permits firm 1 has. (b) At this initial allocation, what is the marginal willingness to pay a permit for firm 1? What is the marginal willingness to accept to sell a permit for firm 2?…
- There are many possible ways to limit the number of cabs in a city. The most common method is an explicit quota using a medallion that is kept forever and can be resold. One alternative is to charge a high license fee each year, which is equivalent to the city’s issuing a medallion or license that lasts only a year. A third option is to charge a daily tax on taxicabs. Using figures, compare and contrast the equilibrium under each of these approaches. Discuss who wins and who loses from each plan, considering consumers, drivers, the city, and (if relevant) medallion owners.The Coase theorem states that if property rights exist, the number of parties is small, and transactions costs are low, there will be no externalities regardless of who owns the property rights. Select one: True FalseFollowing are the marginal abatement costs of three firms . Suppose each firm is currently emitting 10 tons / week , so the total emissions are 30 tons / week . Suppose we wish to reduce total emissions by 50 % , to 15 tons per week . The following table provides marginal abatement costs for each firm . a ) What is the total cost if each firm cuts total emission by 50 % from their current levels . b ) What is the total cost if the total emissions decrease by 50 % ( to 15 tons per week ) that meets the equi - marginal principle . c ) From the society's point , which method of reducing ( a or b above ) emissions is better ? Provide a reason .
- Consider an industry with two firms that emit a uniformly mixed air pollutant (e.g., carbon dioxide). The marginal abatement cost functions for Firm 1 and Firm 2 are: MAC1 = 100-e1 MAC2 = 100-4e2 Aggregate emissions for the industry are denoted as E = e1 + e2. [1] In an unregulated environment how many units of emissions does each firm emit? Firm 1’s unregulated level of emissions: Firm 2’s unregulated level of emissions: Total unregulated level of emissions: Suppose a regulator has a goal of reducing the total level of emissions from the amount from the amount you answered in [1] to 25 units. The regulator would like to achieve the goal of 25 units of total emissions in a cost-effective way. To do so it issues 25 permits, 10 are given to Firm 1 and 15 are given to Firm 2. A firm can only emit a unit of pollution if they have a permit for that unit, otherwise they must abate. After the permits are allocated, firms are allowed to buy or sell…Consider an industry with two firms that emit a uniformly mixed air pollutant (e.g., carbon dioxide). The marginal abatement cost functions for Firm 1 and Firm 2 are: MAC1 = 100 - e1 MAC2 = 100 - 4e2 Aggregate emissions for the industry are denoted as E = e1 + e2. [1] In an unregulated environment how many units of emissions does each firm emit? Firm 1’s unregulated level of emissions ____________ Firm 2’s unregulated level of emissions ____________ Total unregulated level of emissions ______________Two fishing companies, Company A and Company B, each owns a fishing vessel and both have to decide whether sending their fishing vessels to North Sea or South Sea to catch fish. If both companies send their vessels to North Sea, each vessel can catch 150 tons of fish. If both companies send their vessels to South Sea, each vessel can catch 100 tons of fish. If one company sends its vessel to North Sea and the other company sends its vessel to South Sea, the vessel at North Sea can catch 250 tons of fish while the vessel at South Sea can catch 150 tons of fish. The price of fish is dependent on the total catch of fish. The price will be $200 per ton if the total catch is 200 tons, $150 per ton if the total catch is 300 tons and $110 per ton if the total catch is 400 tons. To both companies, the cost of catching fish at North Sea is $16,000 while the cost of catching fish at South Sea is $11,000. (a) If both companies were to make a decision simultaneously, construct the payoff matrix in…
- The mayor of Green City is considering whether to institute a Covid vaccine mandate for public employees. The fire chief opposes vaccination, and has threatened to resign if a mandate is instituted. The mayor believes that instituting a mandate is critical to getting Covid under control, and thus not instituting the mandate would costs the city -50 utility. However, the fire chief is critical to maintaining public safety. If the fire chief resigns, it would cost the city 75 utility. The fire chief believes a mandate would be an invasion of his personal freedom, costing him 20 utility. The mandate only impacts the fire chief if he does not resign. However, resigning his job as fire chief would cost him 40 utility. Draw this game. Identify how many subgames it contains. Then, solve the game to find all subgame perfect Nash equilibria.Suppose a municipality votes to reduce the combined pollution introduced by three local companies. Presently, each firm creates 4 units of pollution in the area, for a total of 12 pollution units. The government can reduce total pollution in the area to 6 units by choosing between the following two methods: Methods to Reduce Pollution 1. The government imposes pollution standards using regulation. 2. The government issues tradable pollution permits. The costs faced by each firm are different, so it is more difficult for some firms to reduce pollution than others. The following table shows the cost faced by each firm to eliminate each unit of pollution. Assume that the cost of eliminating all 4 units of pollution (that is, reducing pollution to zero) is prohibitively expensive for all three firms. Firm Cost of Eliminating the... First Unit of Pollution Second Unit of Pollution Third Unit of Pollution (Dollars) (Dollars) (Dollars) Firm…In 1998, California became the first state to adopt rules requiring many sport utility vehicles, pickups, and minivans to meet the same pollution standards as regular cars, effective in 2004. As the deadline drew near, a business group (which may have an incentive to exaggerate) estimated that using the new technology to reduce pollution would increase vehicle prices by as much as $7,000. A spokesperson for the California Air Resources Board, which imposed the mandate, said that the additional materials cost was only about $70 to $270 per vehicle. Suppose that the two major producers are Toyota and Ford, and these firms were price setters with differentiated products. Show the effect of the new regulation. Is it possible that the price for these vehicles would rise by substantially more than the marginal cost would? Explain your answer.