There are two polluters in an industry with the following cost functions: MAC1 = 182 - 0.14E1 MAC2 = 144 - 0.06E2 The government establishes a tradable pollution permit system and gives each polluter 800 permits (1600 permits in total). What will be the net gain for Polluter 1 from the trade? %3D
Q: 5. Diggers Extraction's total abatement cost is TC = 40 + 2 Q?, so its marginal abatement cost is…
A: Given information, Total cost function: Tc=40+2Q2 Marginal cost function: MC=4Q Emission tax=$120…
Q: A large sewer system will cost P180,000 annually. There will be favorable consequence to the general…
A: * SOLUTION :- * Given that , Annual cost = P180000 Annual benifits = P520000 Annual disbenifits =…
Q: The supply and demand of sugar are given as Qs = 5P, Qd = 250- P where Qs is tons…
A: Since you have asked a question with multiple subparts, we will solve the first three parts for you.…
Q: Classify each of the following statements as either true or false. Give a short (one-paragraph)…
A: The method of calculation of the value that a person places on a good is reffered to be as the…
Q: The following is the demand functions: Q= 25,800-800P + 4A+ 200 CP + 0.4DIPC P = the price per month…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: Choose a wrong statement about uniformly mixed fund pollutants. The damage caused by uniformly mixed…
A: In the market, the pollution is one of the greatest negative externality produced by the firms for…
Q: The supply and demand of sugar are given as Qs = 5P, Qd = 250- P where Qs is tons…
A: Market equilibrium occurs when demand is equal to supply. The marginal external cost is the cost…
Q: A local restaurateur who had been running a profitable business for many years, recently purchased a…
A: Given:- Cost of obtaining license=$90,000 Refundable amount of license=$75,000 Spend on…
Q: OXAGON is an industrial city that will be built in NEOM. One of the factories interested to join…
A: Given: Inflation=11% Real return=3% To find: Interest adjusted for inflation
Q: Your NGO is considering supporting two independent public sector opportunities. There are sufficient…
A: Investing can be a decent in stock market. The greater part of the Americans they save their…
Q: Suppose we are happy with the current level of total emissions across two firms but, the current…
A: The marginal abatement cost refers to the change in total abatement cost when one additional unit of…
Q: Suppose that the annual maintenance cost of a public park is $40,000. The park has no entrance fee…
A: Total cost is the summation of total variable cost and total fixed cost. Total fixed cost is the…
Q: You have been asked to evaluate whether a project to preserve an area of forest should go ahead or…
A: Calculation of present value of net benefit with assumption that net benefit receives at the end of…
Q: A company has determined that the price and the monthly demand of one of its products are related by…
A: Given information: Demand function: D = (400 - P)1/2 Fixed costs = $1,125 Variable costs = $100 To…
Q: On September 2, 2021, the Malaysian government set a ceiling retail price of RM19.90 for COVID-19…
A: In a competitive market, the equilibrium price and quantity of a good are determined at a point…
Q: List down at least 2 examples of microeconomis and macroeconomics issues relative to transportation…
A: The advancement of transportation frameworks happens in a socioeconomic setting. While improvement…
Q: Describe the list of any known constraints imposed by the environment or by management of FreeRice…
A: FreeRice refers to the project started by the UN. Under this project, people need to play the game…
Q: The annual market marginal demand curve for electricity is MB=400-1.5Q. The annual marginal cost…
A: Marginal demand in economics is the change in demand for a product or service in response to a…
Q: Suppose a fossil fuel has stable demand and a constant marginal cost. There are only two periods. MB…
A: Marginal cost denotes the change in total cost due to change in every additional unit produced. It…
Q: The government wants to enact tax legislation aimed at reducing increasing discharge levels of…
A:
Q: If the true marginal abatement cost is unknown by the regulator and if the marginal benefits of…
A: True Abatement cost is refer to the reducing environmental negatives including pollution and…
Q: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 27 - 3E. The…
A: Given, MAC = 27 - 3E Emission tax = $6
Q: Consider a coal-fired power plant, which emits smoke. The smoke harms tourism at a fishing lodge on…
A: here we calculate whether plant owner should accept the deal or not by following method as follow;
Q: ynamic Efficiency: Optimal resource allocation in a two-period problem The demand for a…
A: Dynamic efficiency is associated with time period that help to allocation resources between the two…
Q: Think the two-period model for a depletable resource such as coal. Period 1 is current time and…
A: Coal is a non-renewable resource which implies that its extraction rate is much higher than its…
Q: Micropack producers would like to seek the advice of your Market Research company to advise and give…
A: Given information Demand function X= 35000-50P Ongoing cost=2000 that is fixed expense. Variable…
Q: MD, 28 MD, 12 b. e, Emissions (tons/year)
A: Marginal damage function is the representation of the relationship between amount of emission and…
Q: l swim club opens its pool at noon each day, so it is available to rent during the morning. The cost…
A: Given: Cost of Renting=$1700 Admission, towel service, and lifeguarding fee=$7 per student…
Q: A new chemical component is discovered with amazing properties which however is so toxic that it can…
A: Creative destruction suggests that the old is always replaced by the new.
Q: The market for paper in a particular region in the United States is characterized by the following…
A: Given value,
Q: Suppose the government is trying to determine how to deal with pesticide contamination of its water…
A:
Q: suppose atmospheric co2 is growing at 2 ppm/yr, fossil and cement emission are 9 GtC/yr and the air…
A: Given: CO2 growing rate = 2 ppm/ year 1 ppm of C02 = 2.12 gtc (standard value) Therefore, CO2…
Q: Assuming a $9 per unit subsidy is implemented, the new price to the buyers will be $______. a)…
A: Answer: A subsidy leads to an increase in the supply of a good. So the supply curve will shift to…
Q: Statement of the problem about Effects of Covid-19 on Marble Industry in the Province
A: The Covid-19 circumstance has demonstrated the Marble industry to be lithe and inventive, however it…
Q: 1.The price p in dollars of a certain commodity and the quantity x sold obey the demand equation p=…
A: As per the guild lines we can answer the first question at one time. Please resubmit the question…
Q: Identify technologies under industry 4.0 and What is the future of these technologies in the…
A: The fourth industrial revolution, referred known as "Industry 4.0," affects every production area…
Q: Which of the following statements will hold good in the case of a system with uncertainty in demand…
A: A market is a place where the buyers and the sellers will interact with each other. In the course of…
Q: contamination of its water supply. It wants to undertake a benefit-cost analysis of two alternative…
A: *Answer:
Q: Suppose a fossil fuel has stable demand and a constant marginal cost. There are only two periods. MB…
A: MB=8-0.4qt MC = 2 Total resources=20 r=0.10 qt=q1+q2 q1--- resources used in period 1 q2---…
Q: The demand curve shows how energy use spikes at times of the day that do not align with peak…
A: Demand curve shows the graphical representation between the price of a goods and the quantity…
Q: Suppose the government is trying to determine how to deal with pesticide contamination of its water…
A: The difference between the current value of cash inflows and withdrawals over a period of time is…
Q: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 45 - 5E. The…
A: Given, MAC = 45 – 5E Per unit tax = $10
Q: Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry.…
A: MAC = 100-20W MD = 5W
Q: How much carbon dioxide would you prevent from entering the atmosphere in one year if you replace a…
A: In 1 year kWh for light bulb = 100×365×8 =292000 =292kwh In 1year kWh for CFL = 30×365×8 =87600…
Q: As an energy source, fossil fuels have had an advantage because of their ["low", "high"] cost and…
A: Fossils fuels are a relatively cheap source of fuel and that is one of the reasons for their…
Q: A local restaurateur who had been running a profitable business for many years recently purchased a…
A: Given : The liquor license gives the legal right to the owner to sell wine, beer, spirits in the…
Step by step
Solved in 2 steps
- An Accra Chemical Factory discharges waste products into a river. These wastes kill many tilapia that are swimming upstream to spawn. While there will no doubt be other ecological damages from the chemical effluent, we wish to focus on those of the fishery. Let E be the tonnes of chemical effluent discharged per month. The equation for Marginal Damages (MD) is MD = 6E. The firm’s Marginal Abatement Cost (MAC) is given by MAC = 800 – 10E. a. Suppose the government invokes a liability law that requires polluters to compensate those damaged in an amount equal to the damages caused. Will the factory change its emission levels in response to the liability laws? Explain. b. If E* is the socially efficient level of emission, prove that reducing effluent to E* is a better strategy for the chemical factory than not reducing waster discharged and staying at E0.Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake?. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC=40P Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR=1000-10P How much pollution reduction should Appalachian Coal Mining undertake?
- Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 8 - E. If the government raises the emissions tax from $2 to $3, then the benefits of adopting the new technologies increase by $____. (Hint: recall that the benefits from adopting new technologies are simply the difference in total compliance costs.) Please round your final answer to two decimal places if necessary. Answer is NOT 2. All information is providedSuppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 8 - E. If the government raises the emissions tax from $2 to $3, then the benefits of adopting the new technologies increase by $____. (Hint: recall that the benefits from adopting new technologies are simply the difference in total compliance costs.) Please round your final answer to two decimal places if necessary. Answer is not 2Suppose that the supply curve for generating electricity for a coal power plant is given by P = 5000 + 1/2 * Q. Burning coal to operate the power plant produces poisonous sulfur dioxide gas, which imposes a $6000 cost for every gigawatt-hour of electricity produced on residents of the town near the plant. Demand for the electricity generated by the plant is given by 17000 - Q. What is the marginal benefit to society (MBS) of coal powered electricity?
- f the market for the resource were allowed to go to equilibrium in the first generation, without any regulation, what area(s) would represent(s) the user cost of the first generation? E B+C+D A+B+C+D A+B+C C+D+E(I.) Draw (for yourself) the marginal abatement cost curves for Al and Bob, with “units of runoff abated” on the horizontal axis and “marginal cost” on the vertical axis. How do the curves look like? a. The two lines start from the origin with slopes of 3 and 5 for Al and Bob, respectively b. The two lines are flat with respect to the horizontal axis with intercepts of 3 and 5 for Al and Bob, respectively (II.) To achieve its goal, suppose the local agency asks Al and Bob to abate 10 units each and offers to pay their total abatement costs. What is the total cost to the agency? a. 400 b. 300 c. 250 (III.) (Considering Al’s and Bob’s marginal abatement costs in part (II), has the agency achieved its abatement goal at the lowest possible cost? Why or why not? a. Yes, because the Equimarginal Principle was satisfied b. No, because the Equimarginal Principle was not satisfied c. Yes, because the pollution level was reduced d. No, because the pollution level was not reduced enoughThe marginal benefit of being able to emit a ton of sulfur dioxide emissions for two firms are given by:MBX = 1000 – ( Ex / 2 )MBY = 600 – ( Ey / 3 ) Note that these marginal benefit figures can be interpreted as marginal cost of abating emission down to levels Ex and Ey.Government regulators want to reduce total sulfur dioxide emissions to a total of 1800 tons.a) If the government imposes the same standard of 900 tons maximum emissions on both firms what would be the total cost of abatement (calculated as the aggregated marginal benefits forgone)? b) If the government distributed 900 tradable pollution permits (one ton each) to each firm what would be the final allocation of these permits after the firms trade them?c) What would be the total cost of abatement in this latter case?
- 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. Moreover, assume that the adoption costs for the new technologies are $3. If the government raises the tax on emissions from $1 to $3, then the firm's total costs increase by $____. (Hint: total costs are different from total compliance costs. Total compliance costs are the sum of TAC and tax payment, while total costs are the sum of total compliance costs and adoption costs (remember that adoption costs are only incurred if the firm actually decides to adopt the new technology).) Please round your final answer to two decimal places if necessary. THE ANSWER IS NOT 9Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Please provide the correct answer. Thank you!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…