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- An electricity generation company currently emits 99 tons of sulfur dioxide. Sulfur dioxide emissions contribute to respiratory illness and create acid rain when combined with other chemicals in the atmosphere. The table below shows the marginal cost of abatement, which increases as different abatement techniques are used. Quantity Abated (tons) Marginal Cost of Abatement per Ton 11 $5,000$5,000 22 $8,000$8,000 33 $15,000$15,000 44 $20,000$20,000 55 $30,000$30,000 66 $42,000$42,000 77 $56,000$56,000 88 $80,000$80,000 99 $135,000$135,000 Suppose the government imposes a pollution tax of $44,000$44,000 per ton of sulfur dioxide emitted. How many tons of sulfur dioxide will the company abate, and how many tons of sulfur dioxide will it emit? Write the exact answers. Do not round.COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied. Already solve few hours agob) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? Already solve few hours agoc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in…COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied.b) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? GRAPHc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in favor of which argument you are in favor of.
- Four methods of completing a tax return and the time taken by each method are: A PC, one hour B Pocket calculator, 12 hours C Pocket calculator and paper and pencil, 12 hours D Pencil and paper, 16 hours The PC and its software cost $1,000, the pocket calculator costs $10, and the pencil and paper cost $1. If the wage rate is $5 an hour, the economically efficient method is If the wage rate is $50 an hour, the economically efficient method is A; B D; D B; B B; C If the wage rate is $500 an hour, the economically efficient method isGiven the following information, what adjustment would be needed to account for the difference in the living area or the market condition between the subject property and the comparable property (choose the closest answer) Market Conditions Lot Size Adjustments Bath -0.50% (per month) Effective Age (Years) $1,000 (per year) Bedrooms $25,000 (per acre) Living Area (Sq. Ft) $45.00 (per sq. ft.) $1,250 (per bath) $3,000 (per bedroom)DN3 (a, b) The Keurig pod industry produces one cup of coffee with a constant marginal cost of $4 using a small plastic disposable pod to dispense one serving of ground coffee beans for brewing. The market demand for the Keurig pods is given by P = 22 - Q. This industry also produces excess waste in the form of the empty plastic Keurig pod. These costs are represented by the marginal external cost function, MEC = 0.2Q. a. What is the optimal (efficient) quantity of Keurig pods from a societal perspective? b. The government, concerned about the pollution problem, requires this industry to adopt a fully recyclable Keurig pod that raises the marginal cost of production to MC = $10. Given this new technology, what output level will the industry choose?
- The manufacturer of the brand of laptops of problem #2 will make x hundred units available in the market when the unit price is p= 100 + 80e0.05x %3D dollars. (a) Find the number of laptops demanded per month of the unit price is set at $400 per laptop. (b) Use the results of part (a) to find the producers' surplus if the selling price is set at $400 per laptop.The village has a hiking lodge whose visitors use the lake for recreation. The village also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the hiking lodge's economic profit. Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the hiking lodge would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $2,200 per week, and the hiking lodge's economic profit is $3,200 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $3,000 per week, and the hiking lodge's economic profit is $2,000 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish…Many economists favor a carbon tax as a way to discourage carbon emissions. Suppose such a tax were to be set at $20 per metric ton of carbon emissions (1 metric ton = 1,000 kilograms). Consider a 35% efficient coal-fired powerplant that produces 50MW of electricity. Given the carbon intensity of coal is 24gC/MJ, answer the following: a) What would the annual carbon tax be for this powerplant? Answer: $2.16 million/year b) A tree farm sequesters carbon at the rate of 5,000kg per year per acre over the 40-year life of the farm. What area of forest (in acres) would have to be planted to “offset” the powerplant’s emissions over the next 40 years (roughly the lifetime of the powerplant)? Answer: 21,600 acres c) How much could the powerplant operators pay for the forestry project (in $/acre-year) and still have it be cheaper than paying the $20 per metric ton carbon tax? Answer: $100/acre-year