Suppose that the MD = 5E and with its current techonlogy, the firm's MS is given by MS = 200 - 5E. Determine the emissions tax that would achieve the socially optimal level of emissions.
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Q: QUESTION 3 Suppose that the MD=5E and with its current technology, the firm's MS is given by MS₂ =…
A: Given information: MD = 5E MS = 200 - 5E
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Suppose that the MD = 5E and with its current techonlogy, the firm's MS is given by MS = 200 - 5E.
Determine the emissions tax that would achieve the socially optimal level of emissions.
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- A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, what level of emissions does the firm choose under the tax? A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, how many units did the firm abate relative to the unregulated environment?Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC1 = 10 - 2E1 MAC2 = 4 - E2 If both firms cut their emissions to zero, then total abatement costs (TAC) for both firms is ____. THE ANSWER IS NOT 17Attached is the marginal abatement costs of three firms, related to the quantity of emissions. Each firm is now emitting 10 tons per week, so total emissions are 30 tons per week. Suppose we wish to reduce emissions by 50 percent, to 15 tons per week. Compare the total cost of doing this: (a) with an equi-proportionate decrease in emissions (b) with a decrease that meets the equi-marginal principle.
- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC1 = 30 - 6E1 MAC2 = 20 - 10E2. If both firms cut their emissions to zero, then total abatement costs (TAC) for the two firms is ____. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider a competitive market in which the MPB = 180 – 2q and the MSC = q. In this market, however, there is a positive consumption externality of $60 per unit consumed. What is the efficient level of output in this market? A. 60 B. 80 C. 70 D. 90 E. 100Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 6 - 0.5E. With an emissions tax of $4, the benefits of adopting the new technologies equal $____. Please round your final answer to two decimal places if necessary. THE ANSWER IS NOT 16 Maybe 4?
- Suppose there are three polluting sources with MAC1 = 100 - 4E, MAC2 = 80 - 2E and MAC3 = 60 - 0.5E. When MAC equals $10, the aggregate level of abatement for these sources would be _______.Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 18 - 2E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 9 - E. With an emissions tax of $4, the benefits of adopting the new technologies are $____.Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12 - 3E_1 MAC_2 = 8 - 2E_2. If both firms cut their emissions to zero, total abatement costs (TAC) for the two firms is ____.
- Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 8 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 4 - 0.5E. With an emissions tax of $2, the benefits of adopting the new technologies equal $____.Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 18 - 2E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 9 - E. With an emissions tax of $4, the benefits of adopting the new technologies are $____. THE ANSWER IS NOT 5.Suppose we are happy with the current level of total emissions across two firms but, the current marginal abatement cost for firm 1 is $200 and the current marginal abatement cost for firm 2 is $250. Have we divided total emissions in the best way? Why or why not?
