Create a private market for right to emit sulfur dioxide

Assignment Help Business Economics
Reference no: EM13986047

The Chicago Board of Trade voted to create a private market for right to emit sulfur dioxide. The Clean Air Act of 1990 established a limit, beginning in 1995, on total emissions of sulfur dioxide from 110 power plants. Firms finding it relatively expensive to cut their sulfur dioxide emissions are likely to buy pollution permits because such permits cost less than cutting their emissions. Given that firms can exceed their legal limit and pay fines of $2,000 per ton, do you think that the price of a right to emit a ton of sulfur dioxide exceeds $2,000, why or why not?

Reference no: EM13986047

Questions Cloud

At what interest rate would the company : At what interest rate would the company be indifferent between the two projects?
Describe the systematic approach health care organizations : Explain and discuss some of the unique dilemmas health care organizations face when creating a compensation system - Describe the systematic approach health care organizations may use to determine the monetary value of a job.
Create a private market for right to emit sulfur dioxide : The Chicago Board of Trade voted to create a private market for right to emit sulfur dioxide. The Clean Air Act of 1990 established a limit, beginning in 1995, on total emissions of sulfur dioxide from 110 power plants. Firms finding it relatively ex..
For a perfectly competitive firm : If a monopolist must lower the price on all units in order to sell an additional unit, For a perfectly competitive firm,
What was the lowest dividend yield over the past year : Find the quote for the Laclede Group. Assume that the dividend is constant. What was the lowest dividend yield over the past year? What was the highest dividend yield over the past year?
Demonstrate the effects of the events : How will this policy affect Hong Kong's exchange rate between Hong Kong and the euro zone? Explain your reasoning - Explain your reasoning and answer whether there is exchange rate overshooting.

Reviews

Write a Review

Business Economics Questions & Answers

  The law of comparative advantage recommends that countries

The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.

  Welfare loss triangle occur to total surplus

Assume the equilibrium quantity is 10M of automotive wiper blades at an equilibrium price of $2 per blade. If the government imposes a limit of 8M wiper blades for the private sector in order to support an increased need for rubber in classified oper..

  Elucidate the best response functions for a and b

Assume an industry is a duopoly. Elucidate the best response functions for A and B.

  What is the real wage of labor

Assume that the production function is given by Y = AK0.5L0.5, where Y is GDP, K is capital stock, and L is labor. The parameter A is equal to 10. Assume also that capital is 100, labor is 400, and both capital and labor are paid for their marginal p..

  Analyzed the firms current state and performance

Provided an appropriate analysis of the firm's global operations and integrating information at the regional and national levels - Examined how well the firm has operated in the past.

  Competitive external market

A perfectly competitive external market for the intermediate product exists, and an imperfectly competitive external market for the intermediate product exists.

  Distribution of wealth to the distribution of income

When comparing the distribution of wealth to the distribution of income, it can be noted that

  Explicit cost total economic cost implicit cost shareholder

Economic profit is defined as the difference between total revenue and ________________. Explicit cost total economic cost implicit cost shareholder wealth

  Why did japan''s export based economic groth stall

Why did Japan's export based economic groth stall in the period 1990-2012? In particular, focus on the differences between the modern

  Cattle has coincided with a decrease in consumer incomes

A drought in Alberta and Saskatchewan has made grain, and therefore cattle feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter. As it happens, the slaughter of beef cattle has coinci..

  At the peak of the financial crisis

At the peak of the financial crisis, you had lost 40% of your stock holdings, leaving you with stocks with $10,000. You asked your family for advice on what to do with your money. If you decided to follow your mother’s advice, what is the opportunity..

  What would joy advertising expenditure

What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve c) What would joy's advertising expenditure have to be to counteract this effect?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd