Please assist with part D. , E. And F. OnlySee attached ! d. At the efficient tax, what is the dollar amount of the tax payment by firms to thegovernment? Explain.e. What is the total abatement cost incurred due to the tax? Explain.f. What is the total cost to the firm with this emissions tax? Explain.g. Which policy is more costly to the polluting firm? An efficient standard or an efficientemissions tax? Explain. Use numbers to support your answer.Hint for Question 1: remember from basic algebra how to calculate the area of a triangleA = (1/2)×base height 1. Suppose that the Marginal Abatement Cost function and the Marginal Damage function for anindustry are given as follows:100-0.8eMACMD = 0.2eFor simplicity here, we are assuming that they are linear.a.Graph the MAC and MD curves for this industry. Make sure you are marking out any andall relevant axis intercepts.b. Suppose that an emission tax is imposed to achieve the efficient outcome, at what valueshould the government set the tax? Explain.c. At the efficient tax established in part b, what is the expected level of emissions?Explain.

It appears there was a logical issue with the previous calculation as the intersection point e* was…

Answered: Please assist with part D. , E. And F.…

Business

Economics

Please assist with part D. , E. And F. Only See attached

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first…

A: The discounted payback period is a variation of the traditional payback period used in capital…

Q: then find out the quantity of x and y that will maximize utility.

A: Utility is defined as the total satisfaction that the consumer derives from consumption of the…

Q: 4. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically…

A: A monopolistically competitive market is a kind of market where there is a presence of too many…

Q: In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both…

A: Demand curve represents quantity demanded corresponding to different price level.Demand curve is…

Q: The utility function of an individual is given by u=f(x,y)=x3/4y1/4 Determine the optimal…

A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…

Q: Optimal package size: Optimal package price: $ units

A: Total Revenue is defined as the total amount that the producer earns from the sale of the muffins…

Q: Consider an EOY geometric gradient, which starts at EOY 2 with an initial value $13500 and continues…

A: A geometric gradient refers to a series of values or cash flows that change by a constant ratio over…

Q: (Figure: Increase in Worker Wages) Which might occur due to an increase in wages in a labor market?…

A: The stock bend for work (S) has moved from S0 to S1, demonstrating an expansion in the stock of…

Q: If f(k)= Ak0.5, 4-2, s-0.2, n-0.1, and d-0.1, what is the long-run value of c (i.e., consumption)?…

A: Under the steady state, it is a state of rest for the economy.Under the steady state the capital per…

Q: Draw the indifference curves fort he preference indicated below. (Do not forget to represent the…

A: The indifference curve is a visual representation of a bundle of goods that gives an equal amount of…

Q: An Injection molding system has a first cost of $175000 and an annual operating cost of $87000 in…

A: Annual worth is a capital planning metric that works out the same uniform annual cash flow over the…

Q: 4. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically…

A: A market forin which they do not have perfect substitutes for one another and have multiple similar…

Q: Year Unemployment Rate Inflation Rate Economic Growth Rate 2009 18.9% 0.4% -1.38%…

A: The objective of this question is to critically evaluate the statement that developing countries,…

Q: Some people have argued that the high inflation of the late 1970s was a consequence of the fact that…

A: The Federal Reserve:It has the responsibility to manage the activities of commercial and financial…

Q: Fill in the missing portion of the following table and answer the following questions: (Billions)…

A: INTRODUCTION:The structural budget deficit represents the disparity between the actual budget…

Q: Your Question: Assume that Canada is an importer of televisions and that there are no trade…

A: Tariff is a type of tax imposed by the government on imported goods in the country. Government…

Q: Suppose Westland is the only cable TV provider in a city. The table below shows the demand schedule…

A: Total cost is the total cost of production, which includes both fixed and variable costs. Marginal…

Q: a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000…

A: The total sum that a producer must pay to create all of their goods and services is referred to as…

Q: 2. Home price level is PH = 100CH and Foreign price level is 40CF. If the absolute purchasing power…

A: Absolute purchasing power parity, means that when the currencies have been exchanged between the…

Q: How does the principle of supply and demand affect the pricing strategies of car rental companies…

A: The principle of supply and demand states that the price of a good or service is determined by the…

Q: Pizza O True 4 Coffee Refer to the Figure. This graph illustrates typical indifference curves. O…

A: Indifference curve shows the different combinations of two goods that give the same level of…

Q: Suppose that a firm is in a perfectly competitive market has a long-run cost function given by the…

A: This graph for the Long Run Average Cost (LRAC) and Marginal Cost (MC) for a firm in a perfectly…

Q: A person is endowed with bundle A. The budget line then rotates from red to blue. Good X

A: This can be described as the concept that provides the graphical representation of the combination…

Q: Question 2: Suppose Qd= 100- 10P Qs = 10P a. Draw a graph using the supply and demand equation…

A: The demand for a good is representative of the ability and willingness to buy the good at various…

Q: Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian…

A: Part a: Graph Description ;-Price (P) on the vertical axis and Quantity (Q) on the horizontal…

Q: Suppose that there is a civil case against a defendant. The

A: In an American-style legal fee structure, increasing each party's predicted net gain—which is…

Q: Scooter's Scooters is a large American manufacturer of electric scooters operating out of Mesa.…

A: Economies of scale is when the increase in production decreases the ATC. Diseconomies of scale is…

Q: A movie monopolist sells to college students and other adults. The demand function for students is…

A: Price discrimination occurs when different prices are charged from different consumer based on their…

Q: Komal borrows $18,000 from her father to open her accounting practice. She cashed in a $10,000…

A: Loans refer to financial instruments used to extend debt in terms of money, property, or other…

Q: A company finds that the rate at which the quantity of a product that consumers demand changes with…

A: The demand function is a mathematical representation that describes the relationship between the…

Q: A healthcare provider that is a monopoly - faces the following market demand schedule: P 100 90 80…

A: Profits refer to the financial gains realized by a business or an individual from their operations…

Q: A market has a total demand for 100 units of the product produced. Firms L and F operate in the…

A: Monopoly:Monopoly is a market where there is one seller and many buyers. Seller sells the product at…

Q: Chapter 13: Cost of Production Questions: 1. Which is bigger... accounting profit vs. economic…

A: Total cost is the total cost of production, which includes both fixed and variable costs. Marginal…

Q: Mixed Bundling Problem At the 8:10 café, there are equal numbers of two types of customers with the…

A: Mixed bundling is the situation where a firm decides to sell its products in bundles and…

Q: The area representing deadweight loss is the area of government revenue is Domestic Consumption…

A: Deadweight loss is a concept used in economics to describe a cost to society created by market…

Q: The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when…

A: Let's analyze the given payoff matrix in Table 12.1:The values in each cell represent the payoffs…

Q: Supose that a consumer has utility function U with U(₁,₂)= 14126, where ₁ and 2 are demand of…

A: Utility function : U = x10.4 x20.6Price of x1 = 3Price of x2 = 5 Income of individual = 12Budget…

Q: A cartel: a. is a group Oc. of firms formally agreeing to control the price and the output of a…

A: Market structures are important in economics because they shape the dynamics that regulate resource…

Q: 14. PRICE 0" a U A B G Figure 7-4 QUANTITY Refer to Figure 7-4. Which area represents producer…

A: The difference between how much a person is willing to accept for a given quantity of a good and how…

Q: Consider a perfectly competitive market that consists of 20 consumers with identical preferences.…

A: market is in equilibrium where demand and supply for the product are equal at specific price.

Q: The following data is provided for a PPP project. Benefits Disbenefits To the People $150,000 per…

A: The benefit-cost ratio (BCR) is a financial metric used to evaluate the feasibility and…

Q: Consider a closed economy, where wages are sticky in the short run. The consumption function is C =…

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

Q: The balance sheet of Key Bank (KB) has the following items (all amounts are in SMM). On the Assets…

A: The repricing gap is a measure used in asset-liability management to calculate the gap between the…

Q: Consider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that…

A: The question is asking about the long-run output level of a hypothetical country where initially the…

Q: What will be the dominant strategy outcome for Felix and Jocelyn? O They both get 12 years. O They…

A: Best response strategy is the strategy that gives the player maximum payoff corresponding to the…

Q: Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given…

A: Price- Demand equation: Price supply equation: Equilibrium quantity (x*) = 11Consumer surplus is the…

Q: Desired consumption, desired investment, and government spending in a closed economy are Cd = 360 -…

A: IS-LM model:I stand for investment and S stands for saving. They show the aggregate demand and…

Q: Q1) For quasilinear preferences between goods X and Y, show, using Hicks method, how Income effect…

A: Substitution effect (Hicksian): The change in consumption that occurs because the price change makes…

Q: B. Natural monopoly analysis The following graph shows the demand (D) for cable services in the…

A: The natural monopoly is a kind of monopoly that occurs due to a very high start-up or fixed cost. It…

Q: 4. Bob produces flower pots for sale, which he designs and manufactures using 3-D printing…

A: Rent on building = $30,000 and rent on machinery is $20,000 per month. Total fixed cost =…

Question

Please assist with part D. , E. And F. Only See attached !

d. At the efficient tax, what is the dollar amount of the tax payment by firms to the
government? Explain.
e. What is the total abatement cost incurred due to the tax? Explain.
f. What is the total cost to the firm with this emissions tax? Explain.
g. Which policy is more costly to the polluting firm? An efficient standard or an efficient
emissions tax? Explain. Use numbers to support your answer.
Hint for Question 1: remember from basic algebra how to calculate the area of a triangle
A = (1/2)×base height

1. Suppose that the Marginal Abatement Cost function and the Marginal Damage function for an
industry are given as follows:
100-0.8e
MAC
MD = 0.2e
For simplicity here, we are assuming that they are linear.
a.
Graph the MAC and MD curves for this industry. Make sure you are marking out any and
all relevant axis intercepts.
b. Suppose that an emission tax is imposed to achieve the efficient outcome, at what value
should the government set the tax? Explain.
c. At the efficient tax established in part b, what is the expected level of emissions?
Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: step 1

VIEW

Step 2: step 2

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Question Two: The following data for a small farm operating in a perfectly competitive market are given in the table below. The price is $10 per yogurt. Q TC 100 10 200 20 280 30 330 40 360 50 380 60 390 70 425 80 500 90 610 100 750 Instructions: 1. What is the firm's decision at that price? (whether to produce or to shutdown), justify your answer. 2. Show the range of output at which the firm experience IMR and DMR. 3. Using excel, now suppose the price of strawberry yoghurt decreases to $5.5 per unit, what is the right decision firm should take, (produce or shutdown) justify your answer.
1. Suppose that the Marginal Abatement Cost function and the Marginal Damage function for an industry are given as follows: For simplicity here, we are assuming that they are linear. a. Graph the MAC and MD curves for this industry. Make sure you are marking out any and all relevant axis intercepts. MAC 100- 0.8e MD = 0.2e b. Suppose that an emission tax is imposed to achieve the efficient outcome, at what value should the government set the tax? Explain. c. e. At the efficient tax established in part b. what is the expected level of emissions? Explain. d. At the efficient tax, what is the dollar amount of the tax payment by firms to the government? Explain. What is the total abatement cost incurred due to the tax? Explain. f. What is the total cost to the firm with this emissions tax? Explain. g. Which policy is more costly to the polluting firm? An efficient standard or an efficient emissions tax? Explain. Use numbers to support your answer. Hint for Question 1: remember from basic…
Draw a diagram of the marginal abatement cost curve described by: MAC = 100 - 2E. What is the uncontrolled level of emissions? What is the marginal abatement cost of the 40thunit of abatement? What is the total abatement cost of 40 units of abatement?
The total cost of Mr. Plow, a snow-removal business, is given in the table below. Quantity adriveways cleared) Abbreviation Formula: Total Revenue TR Total Cost TC $0 $25 20 30 40 50 60 70 80 34 41 46 49 51 54 60 70 95 145 10 100 What is the total profit of cleaning five driveways if the price Mr. Plow can charge is $10 per driveway? s 01/21 VIEW sOLUTION O OF 21QUESTIONS COMPLETED 28 MacBook Pro 59
Prce per botie (S) The diagram to your right describes the per unit costs and revenues related to the monopoly firm NutriPowder Inc. NutriPowder Inc manufactures and sels a new food powder called NuriPowder that provides the consumer with all the essential nutnents and yet helps the consumer treduce his or her woight significantly Using the rectange drawing tool, draw the area that represents the weekly maximum total prote eamed by manufacturing and selling NutnPowder. Label it Profr. Note: if you are not prompted for a label then you have used the wrong drawing tool MC to ATC 41 20 112 MR 20 Quantity (Hundeds of bottes per week)
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.
b) Discuss and explain the concept of positive return toscale showing it relationship with the quantity ofproduction.
Mc Graw Hill apter 10 Problems 1 01:49:26 eBook Price ($) F OU 60 40 20 0 4 8 Output 12 MR 16 of $ Prev D₁ Saved 20 1 of 5 Instructions: Enter your answer rounded to 2 decimal places (i.e. dollars and cents). If there is an economic loss, be sure to include a negative sign (-) in front of your answer. This firm is incurring a (Click to select) ‒‒‒ Help Next > Save & Exit Submit Check my work 2
Computer models of global climate changecaused by increasing carbon dioxide in the atmosphere predictnot only higher overall temperatures, but also more intense andfrequent heat waves. During the devastating European heatwave in the summer of 2003, between 35,000 and 52,000“excess deaths” occurred. Before taking specific actions toreduce carbon dioxide emissions, economists and politicians tryto estimate the costs. Should excess deaths be included as acost of inaction? If so, what value should we place on a life?
A firm has a marginal emissions benefit of 100-0.5*E in each of 2 years, where E measures emissions in tons. The marginal cost of emissions to society is 75/ton. The discount rate is 10% and the marginal cost of emissions also grows at 10% per year. The government decides to give the firm permits to emit 50 tons of emissions per year, but allows the firm to "bank" or "borrow" permits across the two years so that this effectively acts as a 100 ton cap on emissions over 2 years. How much will the firm emit in each year? If all firms are identical to the one you analyze here, is the government issuing too many or too few emission permits relative to the efficient level? How do you know?
Economics A plant has a marginal abatement cost given by MAC = 14 - 3E. Regulators impose an emissions standard limiting the plant to emitting only 2 units of emissions. How much will it cost the plant to comply with that standard?