Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 12 – E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 6 – 0.5E. The adoption costs %3D for the new technology are $6. If the government raises the tax on emissions from $1 to $4, the benefits of adopting the new technologies increase by $_

Q: uppose the Ontario government has the following information: the emission reduction cost for an…

A: MAC = 500 – 2E MD = 0.5E

Q: Suppose that the private marginal cost for a product's (rice) consumption is given by the MB curve…

A: As we know market equilibrium is achieved when demand and supply for goods are equal at certain…

Q: Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry.…

A: MAC = 100 - 20W  MD = 5W

Q: Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue…

A: MC = 40 P  MR = 1000 - 10P

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A: In this situation, The government intends to cut the overall amount of pollution produced by three…

Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16  - 2E.…

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Q: Which of the following is example of external economies of scale? Discount on purchases of raw

A: To find : Example of external economies of scale.

Q: Imagine any number of identical boats can fish along the North Carolina coast. The value of fishing…

A: Optimal condistion,  Marginal revenue = Marginal cost

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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…

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A: The supply curve of generating electricity represents the marginal cost of private, MC =P= 5000 +…

Q: Suppose that the private marginal cost for a product's (rice) consumption is given by the MB curve…

A: Given information MB=360-4Q MC=6Q Negative externality exists. Given diagram

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A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

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: The external marginal cost of producing coal is MCexternal = 4Q while the internal marginal cost is…

A: Demand = 1800 - Q MCExternal = 4Q MCinternal = 4Q

Q: Imagine any number of identical boats can fish along the North Carolina coast. The value of fishing…

A: The optimal value will occur when we equate marginal revenue to the marginal cost.  MV =50 - 5 N  MC…

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A: In economics, deadweight loss refers to the loss in economic rents (or total surplus) that not…

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Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16  - 2E.…

A: Given: MAC = 16  - 2E After new pollution abatement, MAC = 8  - E

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Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E.…

A: Given,  With existing technology MAC = 12 - E. With new technology MAC = 6 - 0.5E.

Q: Suppose there are two power plants that release sulfur dioxide (SO2) into air at their current…

A: Given that; MAC1 = 3q1 + 5 MAC2 = 2q2 Two power plants release 150 units of SO2  and each firm…

Q: Suppose that the government decides to issue 2 tradable permit to reduce pollution to 2 tons of CO?…

A: Abatement Cost is defined as a cost which is incurred by the firms when they are required to reduce…

Q: Imagine a firm’s marginal abatement cost function with existing technologies is: MAC = 8 – E. If the…

A: Given that marginal abatement cost and marginal of new technology and old technology. Old tech: MAC…

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A: Given: marginal value (MV) = 52 − 8N Each visitor's travel costs to the park (C) = $4 (The social…

Q: QUESTION 11 The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it…

A: Answer - "Thank you for submitting the question but we are authorized to solve only subparts for the…

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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Q: Each firm is now emitting 10 tons per week, so total emissions are 30 tons per week. Suppose we wish…

A:

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A: The abatement cost refers to investments that minimise direct pressures on natural assets (for…

Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E.…

A: Existing technology  MAC = Tax   =>    12 - E = 4      => E= 8 Total Abatement cost (TAC) =…

Q: Suppose there are two power plants that release sulfur dioxide (SO2) into air at their current…

A: Introduction Two Power plant has given as MAC1 = 3q1 + 5 MAC2 = 2q2 They both release 150 units of…

Q: By selling x tons of the first commodity the firm gets a price per ton given by Px=96-4x By selling…

A: Given, Px=96-4x  Py=84-2y C(x,y)=2x2+2xy+y2