Find the marginal abatement cost for plant

Assignment Help Econometrics

Reference no: EM13180470

The new mayor has pledged to reduce air pollution, and the only source of air pollution in the city are two cement plants, plant A and plant B. 25 years ago, when plant A was constructed, the cement production technology produced a lot more pollution; it therefore has a pollution abatement cost of 5c3, where c is a unit of pollution. Plant B was constructed 2 months ago; it has a pollution abatement cost of 10c2. Assume that neither plant is initially engaging in pollution abatement. The per unit benefit to a unit of pollution abatement is constant at $1500. Unless told otherwise, assume the plants are owned by different firms.

A) marginal abatement cost for plant A is 15c^2

marginal abatement cost for plant B is 20c

B) at social optimal level

15c^2 + 20c = 1500

3c^2 + 4c = 300

we get c=9.35

plant A contribution =1312

plant B contribution= 188

Reference no: EM13180470

Questions Cloud

Find out the name of unknown organic compound : Using the following spectral information, determine the name of unknown organic compound A. For full credit, explain why/how the spectral information led you to your answer.

What price would the total expenditure on coffee be largest : Suppose the daily demand for coffee in Seattle is Q^d=100,000(3-P)^2 A. What is the elasticity of demand (Ed) at a price of $2.(Please show exactly which equation is needed to find Ed here) B. At what price would the total expenditure on coffee be la..

Calculate the average issue price of the common stock : Compute the number of preferred shares that were issued during 19X6 and calculate the average issue price of the common stock sold in 19X6.

Find out delta h for the reaction : Once the pKw's at the three temperatures are determined, the Van't Hoff equation can be used to determine Delta H for the reaction, and from that Delta G, and Delta S can be calculated.

Find the marginal abatement cost for plant : The new mayor has pledged to reduce air pollution, and the only source of air pollution in the city are two cement plants, plant A and plant B. 25 years ago, when plant A was constructed, the cement production techn..

Compute the enthalpy chanfe for the reaction of naoh : the heat calculated after a calimetry experiment is equal to the enthalpy change for reaction. Use the thermochemical data to calculate the enthalpy chanfe for the reaction of NaOH and CH3COOH.

Determine the rate constant : The reaction 2NO2(g)-----2NO(g)+O2(g) was studied at 383dgree c and the following data was obtained?

Find the net present worth of alternative : Two different alternatives shown in the table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Y are replaced at the end of their lives.Data Alternative X Alternative Y Initial Cost $6,000 $1,500Uniform Ann..

Define what is the value of the rate constant : What is the value of the rate constant for the reaction? How much time will take the consentration to drop to one tenth of its initial value?

User Account

All Pages