Abatement cost for both companies under cost effective

Assignment Help Business Economics

Reference no: EM13859862

Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. The two firms face the following abatement costs:

MAC1 = 18 + 0.7A1 MAC2 = 15 + 3.2A2,

where costs are measured in thousands of dollars.

a) Prove that a uniform standard will not meet the cost-effectiveness criterion.

b) Determine the abatements for company 1 and 2 under the cost effective criterion.

c) Determine Total abatement cost for both companies under cost effective criterion

d) Are there any cost savings on implementing the cost effective criterion with respect to uniform standards, if so please show the savings

Reference no: EM13859862

Questions Cloud

Which element are inner shell electrons more tightly bound : The general type of radiation that is emitted when any nuclear particle or any atomic electron moves from one quantized energy level to a lower quantized level - In which element are the inner shell electrons more tightly bound to the nucleus?

Write a matlab program that plots x1(t) : Plot (by hand) the signal. Write a MatLab program that plots x1(t) , |t|

The consumer product safety commission : The Consumer Product Safety Commission is reconsidering a rule it first proposed in 1997 that would require child-restraint caps on household products, including cosmetics. When the rule was first proposed, it was resisted by the cosmetic industry an..

Find the pure strategy nash equilibrium of simultaneous : Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..

Abatement cost for both companies under cost effective : Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. Determine the abatements for company 1 and 2 under the cos..

Cloud computing hardware and software : What is hypervisor? Provide examples.

What are key design features of self-directed teams : What are key design features of self-directed teams? Which design features are desirable and which are essential for success?

Firm has constant marginal-average cost of producing good : The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quantity c..

What is the critical first step in the cell site design : What is the critical first step in the cell site design process?

User Account

All Pages