Reference no: EM131377225
Supposse the (external) damage done by pollution is known to be MD=300+5q, and the (private) cost and benefit are given by MC=100+2q and MB=D-2q, where D is not known.
a) If d=1000, what would be the optimal quantity? What tax would be necessary in order for that to be the equilibruim quantity?
b) Suppose that, based on the resultfrom part (a), a cap-and-trade system is imposed to allow the optimual quantity of polution to be produced. If D=900, what would be the deadweight loss associated with having the wrong quantity?
c) Suppose that, based on the result from part (a), a tax is imposed to allow the optimal quantity of polution to be produced. If D=900, what would be the deadweight loss associated with the wrong tax level?
d) If D is not exactly known, which is likely to give better results, acap-and-trade system or a tax? What would be the answer to this question if MD were 300+3Q instead of 300+5q
e) Can the social optimum be achieved using a tax on pollution?
Characterizing the transition to money manager capitalism
: Which of the following were developments characterizing the transition to money manager capitalism?
|
Explain why this would tend to make banks more profitable
: Banks are currently required to hold at least 10% of their checking deposits as reserves. Many bankers would prefer that the required reserve ratio be lowered to 0% (as in Canada and England, where there are no reserve requirements). Explain why this..
|
Labor market-the demand and supply model predicts
: In the labor market, the demand and supply model predicts that new technologies could raise the pay of high-skill labor but reduce the pay of low-skill labor. Explain why and demonstrate your point with a demand and supply diagram.
|
Determine it is economic service life-corresponding aw value
: Halcrow,Inc., expects to replace a downtime tracking system currently installed on CNC machines. The challenger system has first cost of $70,000, an estimated annual operating cost of $20,000, a maximum useful life of 5 years, and a $10,000 salvage v..
|
Deadweight loss associated with the wrong tax level
: Supposse the (external) damage done by pollution is known to be MD=300+5q, and the (private) cost and benefit are given by MC=100+2q and MB=D-2q, where D is not known. Suppose that, based on the result from part (a), a tax is imposed to allow the opt..
|
Division of the occupation struture
: Statistical discrimination can only take place if: The division of the occupation struture into "female" occupations and "male" occupations is known as:
|
Circumstances will the seller pay the whole of per-unit tax
: Under which of the following circumstances will the seller pay the whole of a per-unit tax? When a simple monopolist – no price discrimination – chooses to sell an additional unit of a good or service. Suppose we observe that the price of gasoline ha..
|
Average wage of the russian worker
: In November 2016 the average wage of the Russian worker is 36,115 rubles per month, and in 2013 it was 21,300 rubles per month. If the current exchange rate equals 1 USD = 64.0 RUB, while in 2013 it was 1 USD = 32.6 RUB, is the Russian worker better ..
|
Government regulation to ensure fairness in the low-calorie
: Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two (2) examples of government involveme..
|