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?
Q: Refer to the graph to the right. The shift from AS, to AS, shown in the diagram is referred to as a(...
A: Aggregate supply curve is a positively sloped curve which shows the relationship between price level...
Q: Give an example of an Inelastic product, what makes it inelastic? What can make it become elastic?
A: Elasticity is a term used in business to describe the extent to which a change in a product's charac...
Q: Which province has the highest union rate in Canada? Newfoundland and Labrador Nova Scotia Ontario Q...
A: When talking about union rate in Canada, there are different provinces that holds different share of...
Q: Solve and discuss the following income determination model: Y, =C, +1,C, =300+05y, +0.4y,-1 I, = 200...
A:
Q: Please answer in paragraphs. Rate will be given! Give an example of an Elastic product, what makes ...
A: Elasticity is an important concept used in business to determine the extend to which the quantity de...
Q: What are the two main limitation of macroanalysis? Discuss briefly in few sentences:
A: The two limitations of macroanalysis are as under: (1) A person is completely unnoticed. The basic g...
Q: The following figure shows the supply function of a firm. (The following is a description of the fig...
A: A surplus of producers is a measure of producer welfare if the firm sells q2.
Q: ear end ash Flow 1 2 3 4 -3,345 1,100 1,100 1,100 1,
A: Assume, CF = Annual cashflow IRR = r n = 4 years
Q: Suppose that you are in an economy with reserve requirements are equal to 15%, and cash drain is equ...
A: According to the question given, IN an economy, reserve requirements are equal to 15% and cash drai...
Q: The simple linear regression model in the exhibit 2 data shows that, Both the intercept and the IDV ...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: ) In 2021, Jay purchases a car for $22,000. The value of the car depreciates (exponentially decrease...
A: The above question is based on the calculation of Depreciation. Depreciation refers to the fall in t...
Q: Which of the following DOES NOT agree with the definition/description of Benefit-Cost ratio? A. Bene...
A: The benefit-Cost ratio is a method to analyse the economic worthiness of a project. It compares the ...
Q: PLEASE SOLVE ONLY PART "F" & "G" Consider the market for station wagons. For each of the events lis...
A: Equilibrium quantity and price for goods and services are dependent on the shift in aggregate demand...
Q: Scenario: Alex, an entrepreneur, operates a called business "Fitness for Life", providing physical c...
A: According to the question given, Alex is an entrepreneur who owns a business called "Fitness for Li...
Q: 3. In 1986, the CPI stood at 109.6 while in 2016 it stood at 240.0. In 1986, a new Toyota Corolla LE...
A: Consumer price index is the weighted sum of a consumption basket used to gauge inflation rate in the...
Q: Consumers, firms, and governments face __________ because we are faced with the problem of _________...
A: Introduction: As we know that Scarcity is considered the each and every time a decision is taken for...
Q: An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of wor...
A: (Option D) 10 is the correct answer
Q: How do propensities and multipliers, and even expectations affect the outcomes in a downturn
A: In an economy, when talking about propensity, expectations and multipliers, these are the ratios of ...
Q: Give a concrete example showing how Aid for Trade had succeeded or failed in certain countries. Expl...
A: Trade-related aids can be considered as one of the most important tools for providing support for tr...
Q: If an investment has an estimated cost of £1000, and it offers £550 the first and the second year af...
A: The internal rate of return (IRR) is the interest rate that makes the net present value (NPV) zero. ...
Q: REFLECTION PAPER: IMPACT OF GLOBALIZATION ON HOW PEOPLE COMMUNICATE, AND VICE VERSA
A: The effect of Globalization on How People Communicate and Vice Versa
Q: 6. Tariffs as trade policy always involve economic costs to the trading countries; less trade, highe...
A: A tariff is a sort of border tax imposed by a country on an imported commodity. Tariffs have long be...
Q: Canada's progressive income tax system results in a more equal after-tax distribution of income when...
A: Tax refers to the compulsory charge taken by the government of the country from individuals without ...
Q: 2. There are three student canteens serving different types of foods located at the campus. Table be...
A:
Q: A central bank that increases the money supply in its economy has more effect on spending the more i...
A: The total volume of money that is being held by the public at a particular point of time in the econ...
Q: 5. If the marginal revenue function for a manufactures product is 6. +5 ; find the demand function. ...
A: Given: The marginal revenue function is: MR = 6Q + 22 + 5 To Find: The demand function:
Q: 5. ) In industries with exogenous sunk costs, industry concentration decreaseses and apporaches zero...
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: 1. What are the 3 components for Economics Efficiency ?
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: Many changes are affecting the market for oil. For example, Cars are becoming more fuel efficient, a...
A: When talking about oil market, it can be seen that the demand is the highly consumed resource as it ...
Q: 1. Complete the following table. Total Fixed Total Cost Average Marginal Cost Variable Average Total...
A: Some basic formula that will be used to complete the given table Total cost = Fixed cost + Variable...
Q: Superiority of Robbins' Definition of economics is rightly called the " Superiority of Robbins' Defi...
A: Answer: Robbins dismantled the old economic structure focused on material welfare and built a new on...
Q: Calculate the capitalized cost of an equipment maintained at a rate of 6% every year for P10,000, re...
A: The present value of an item's annual sales over an indefinite period is its capitalization cost.
Q: 4. Historically, money has become more and more important - the technological developments made spe...
A: During older days, there was barter system, in which goods were exchanged for goods. Then metals suc...
Q: Identify and describe a distinction between the monetary policy tools of the Fed and those of the Eu...
A: Despite the Great Recession's initial perception as a US crisis, the Eurozone was involved from the ...
Q: Suppose a nation’s firms make heavy use of factors of production owned by residents of foreign count...
A: GDP refers to the money value of all final goods and services that are produced within the country d...
Q: Question 2 What do the findings of the World Economic Forum study show? O Reducing gender inequality...
A: The forum that engages business, political, and other social leaders for shaping regional, global, a...
Q: the demand curve for chocolate bars is downward sloping and the supply of it decreases, there is __ ...
A: Consumer surplus is the difference between the maximum willingness to pay and actual payment. Fall i...
Q: Write down the three mai and core points of Criticism of Marshallian View?
A: Lionel Robbins spearheaded a direct assault against the Marshallian perspective. The primary grounds...
Q: MIXED STRATEGY NASH EQUILIBRIUM Consider the following game in strategic form. bị b2 a1 19,1 80,70 a...
A: Mixed strategy games are those in which players choose any strategy based on a probability distribut...
Q: 2. Two pumps are being considered for a pipe system. Table P4.39 shows the economic and operating pa...
A: Cost is divided into two categories such as total fixed cost and total variable cost. Total fixed co...
Q: Suprose a liim hus revenue R=15-. 5q² und (Ost C= 93-13.5e²+50+ 40. Make a sketch of average variabl...
A: The cost which changes with the change in the volume of output is called total variable cost. These ...
Q: 1. Why do employers typically pay for specific skills? These skills only work with one employer, thu...
A: Specific skill can be the ability of a person to do something that others are not able to do.
Q: If price falls by 49 and income rises by uantity demanded of the service will
A: Price elasticity of demand : The responsiveness quantity demanded to change in its price is called p...
Q: What can you say about Tax incidence in the Philippines, who carries the burden more? Give examples ...
A: Tax incidence is an economic term for the distribution of tax burden between producers and sellers. ...
Q: In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y1 alre...
A: Stackelberg game is a game of duopoly, this model is an extension of the Cournot duopoly model, the ...
Q: mand for organs increases from qa to qE. mand for organs doesn't change with the imposition of a zer...
A: All answers given below,
Q: (1) A consumer's utility function is given by u (z_y) := z/2y/2 for any nonnegative z and y, represe...
A: Utility function : U = x1/2y1/2 Price of x = Px Price of y = c1 Income = m Budget Constraint will ...
Q: 4. The real GDP in the first quarter of 2020 was found to be $500,000 and the number of hours worked...
A: 2020 data:- Real GDP = $500,000 No of hours worked = 5000 2021n data :- Real GDP rose to = $720,000 ...
Q: Question P = 16-9 cQ) 131 2. C2=9Q2 a-) Find couinet equilibrivm Cn) b-) Find cournot eQuiliblium wh...
A:
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?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 110-2E_1 MAC 2 = 16-4E_2. If both firms were forced to eliminate all of their emissions, their combined total abatement costs (TAC) would be Answer:Imagine a firm’s marginal abatement cost function with existing technologies is: MAC = 24 – 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 12 – E. The adoption costs for the new technology are $2. If the government raises the tax on emissions from $2 to $4, the firm's total costs increase by $_____. Select one: a. $19. b. $15. c. $16. d. $21. 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.Attached 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.
- Following are the marginal abatement costs of three firms . Suppose each firm is currently emitting 10 tons / week , so the total emissions are 30 tons / week . Suppose we wish to reduce total emissions by 50 % , to 15 tons per week . The following table provides marginal abatement costs for each firm . a ) What is the total cost if each firm cuts total emission by 50 % from their current levels . b ) What is the total cost if the total emissions decrease by 50 % ( to 15 tons per week ) that meets the equi - marginal principle . c ) From the society's point , which method of reducing ( a or b above ) emissions is better ? Provide a reason .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…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 ______________
- Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are as shown in the following table: Process (smoke) Cost to Sludge Oil ($/day) Cost to Northwest Lumber ($/day) The City Council wants to curb emissions by half and decides to auction off four permits, each of which entitles the bearer to emit 1 ton of smoke per day. No smoke may be emitted without a permit. Suppose the government conducts the auction by starting at $1 and asking how many permits each firm wants to buy at that price. If the total is more than four, it then raises the price by $1 and asks again, and so on, until the total quantity of demanded permits falls to four. How much will each permit sell for in this auction? Each permit will sell for $ 3 500 A (4 tons/day) B (3 tons/day) C (2 tons/day) D (1 ton/day) E (8…Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 32 - 4E. The government offers a $8 per-unit subsidy for abatement. In principle, the firm could ignore the subsidy and continue to emit as many emissions as it was in the absence of government intervention, but there is money to be made from cutting back its emissions. Compared to ignoring the subsidy, how much money could a cost-minimizing firm save or make by cutting back its emissions? (Hint: remember that firms trade off the benefits of the subsidy with the costs of abatement when deciding how much to abate) Answer:Explain the difference between regulating emissions via fees vs. standards. Which of the two would be more efficient if there are large differences between the firms’ marginal costs of abatement.
- Suppose a power generating plant emits particulates that damage crops and affect human health. The relationship between emissions and environmental damage is represented by the marginal damage function, MD=9e where e represents tons of emissions per month. The cost to the firm (and society) of eliminating emissions is represented the marginal abatement cost function, MAC=108.5 - 6.5e Both MD and MAC are dollar costs per month. If the power generating firm were allowed to ignore the social cost of its emissions, what would be the firm’s monthly emission level? Calculate the socially efficient level of pollution. If the emissions calculated in part B is a level found to shorten some people’s lives, could it still be considered socially efficient? Suppose the EPA set an emission standard at the socially efficient level calculated in part B. Calculate the cost to the firm of achieving this standard. Suppose that instead of a standard, the EPA charged an emissions tax. The tax is set at…Two coal-burning electric power plants are emitting mercury which impairs cognitive development in children. Plant A's marginal abatement cost is MCA= 1.2q and plant B's marginal abatement cost is MCB = 0.3q. Each firm initially emits 50 units and the EPA would like to reduce total emissions to 40. If the EPA follows a command-and-control policy and tells each firm to abate by the same amount, what will be the total costs? If firms could trade permits, what would happen to total costs? Why?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 for the new technology are $6. If the government raises the tax on emissions from $2 to $4, the firm's total costs increase by $_____. HINT: Total costs include tax payments, total abatement costs, and (if relevant) adoption costs for the new technology. Select one: a. $12. b. $8. c. $10. d. $16.