Establish the efficient level of pollution for this economy

Assignment Help Econometrics

Reference no: EM131072606

Two firms A and B, making up a sector of the economy, emit pollution (pol) and have marginal abatement costs: MAA = 24- pol and MAB = 24-(1/2)pol. So the total abatement curve for this sector is given by MA = 24-(1/3)pol. The marginal damage function is constant at a value of $12 per unit of pollution emitted: MD = $12.

(a) Draw the MD and market-level MA curves and establish the efficient level of pollution for this economy.

Reference no: EM131072606

Questions Cloud

Is the world temporary or eternal good or evil : What is the nature of the world? Is it orderly or chaotic, intelligible or absurd, good or evil (or something else), eternal or finite? What is the nature of human beings? Are we good or evil or amoral?

What kinds of information database system collect : Why it is necessary to use database system - What kinds of information database system collect? and what information it provides and which database management system is used? Access?

Write a program to produce a detail report of student grades : You will write a program to produce a Detail Report of Student grades with a summary total. The user will type in a set of student records with two fields in each record.

How many units will they (profitably) trade : If these two firms can freely trade the right to pollute, how many units will they (profitably) trade?

Establish the efficient level of pollution for this economy : establish the efficient level of pollution for this economy.

Compute the surface area of revolution of curve : Compute the surface area of revolution of the given curve about the x-axis over the given interval- y = 13x2, [0, 4].

Constructs provided by simulation language in model building : Discuss why it is important to be able to employ previously developed models of system components in addition to the more basic modeling constructs provided by a simulation language in model building.

Calculate the consumer surplus at the equilibrium : Calculate the consumer surplus at the equilibrium.

Use the distribution function fitting software : Consider the following data set: 1, 2, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 15, 16, 17, 17, 18, 18, 18, 20, 20, 21, 21, 24, 27, 29, 30, 37, 40, 40. What distribution family appears to fit the data best? Use summary statistics and a histogram to assist..

User Account

All Pages