Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose the marginal external cost of emissions of a certain substance is equal to $16. Furthermore assume that there are two sources of these emissions. The unregulated emissions (Ei), total cost of abatement (TCAi), and marginal cost of abatement (MCAi) for the two sources are given below: Source 1: E1 = 20 TCA1 = (A1)2 MCA1 = 2A1 Source 2: E1 = 20 TCA2 = ½(A2)2 MCA2 = A2 (a) Explain why the marginal benefit to emissions abatement (MBA) is equal to $16. What is the efficient level of abatement for each source? Illustrate in a diagram. [6] A principle in economics is that the marginal cost or marginal abatement and marginal benefit needs to be equal. This means that the cost incurred by society (in forms of environmental impact and economic impact) need to be equal to the marginal benefit incurred by the consumer. The re (b) How would each firm respond to a per unit tax on emissions equal to $t. That is, can you express abatement as a function of the tax? What is the efficient tax? Given the efficient tax, what is the total cost to each source (abatement costs plus taxes paid)? [6] (c) Suppose instead of the tax, a regulator assigns to each source non-transferable permits for 8 units of emissions, how many units of abatement will each firm undertake? Explain, calculate, and illustrate the inefficiency of this policy. [8] (d) Now suppose that the regulator assigns to each firm tradable permits for 8 units of emissions. What would be the equilibrium price of a permit after trade has taken place? What would be the allocation of abatement?
suppose that discount brokers make bonds more liquid.a. in the liquidity preference theory how does this development
Critics of traditional welfare programs often argue that a downside of traditional welfare programs is that when the government gives lower income people money, it causes them to work less. Compare and contrast the theoretical implications on lab..
Analyze how production and cost functions in the short run and long run affect the strategy of individual firms and use technology and information resources to research issues in managerial economics and globalization.
Research the elasticity of beef and eggs in regards to price changes. How do supply, demand, and price control interact to affect the equilibrium price of eggs How do these factors differ in impacting the price of beef
choose and research a specific business that is publicly traded where there has been a pattern of change in a
southwest airlines is by far the low cost carrier on the sacramento to los angeles air travel route. their marginal
researchers have estimated the long run demand elasticity for almonds is -0.47 and the long run supply elasticity is
why are trade agreements important for the various countries involved? how is international trade related to the u.s.
discuss the impact of that ability to create money on the economy during an inflationary gap and during a recessionary
In economics, what factors may help determine the value of information Can you provide factors in the case when information is treated as a consumption good Can you provide factors in the case when information is treated as an input in the decisio..
price nbsp nbsp nbsp nbsp nbspnbsp quantity
When the price of a good is $5, the quantity demanded is 100 units per month; when the price is $7, the quantity demanded is 80 units per month. What is the price elasticity of demand, using the midpoint method?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd