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1. A coal-powered plant that generates electricity for the western part of North Carolina has been given a quota by the Environmental Protection Agency that limits them to releasing 3 million particles of contaminants per day. Based on studies of the effect of this type of air pollution on the public, if the release of particles were decreased to 2 million per day, the public would gain $800,000 each year in additional labor income and higher property values. It would increase the operating costs of your plant by $500,000 per year to cut back from 3 to 2 million particles per day.
a) Is this situation resulting in an efficient level of emissions? Why or why not?
b) Suppose a tax of $1 per particle were imposed on the daily average of particle emissions. How does this change the decision to cut emissions back from 3 to 2 million particles per day?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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