How many units of pollution would each point source abate

Assignment Help Microeconomics
Reference no: EM13914800

Assume for simplicity that there are two identified point sources discharging chemical wastes into a local water body. Currently, each source releases 30 units of effluent, for a total of 60 units. To

a. Suppose the government allocates the abatement responsibility equally across the two point sources so that each must abate 15 units of effluent. Graphically illustrate this policy, and explain why this abatement allocation does not yield a cost-effective solution. Support your answer numerically.

b. What cost condition is required for the government's abatement allocation to be cost- effective?

c. Suppose that instead of using an abatement standard, the government institutes an effluent fee of $40 per unit of pollution. How many units of pollution would each point source abate? Is the $40 fee a cost-effective strategy for meeting the 30-unit abatement standard? Explain.

Reference no: EM13914800

Questions Cloud

What is the impact of the currency changes on fourth quarter : Identify four quality of earnings issues reported in the case and the analysts' concern about each. In percentage terms, what is the impact of the currency changes on fourth quarter earnings?
Incident response system-place of employment : Why is it necessary for a business to have an Incident Response System in place? Does your place of employment have one? Explain in detail.
Analysis of specific branch of manufacturing-service-trade : Industry analysis is the analysis of a specific branch of manufacturing, service, or trade. Understanding the industry in which a company operates provides an essential framework for the analysis of the individual company—that is, company analysis.
Implemented a consolidation strategy : A prestigious university has recently implemented a consolidation strategy that will require it to centralize their student records. In order to move forward, the local university will need to develop a data model that will retain student records ..
How many units of pollution would each point source abate : Suppose that instead of using an abatement standard, the government institutes an effluent fee of $40 per unit of pollution. How many units of pollution would each point source abate? Is the $40 fee a cost-effective strategy for meeting the 30-uni..
Cash flow statement-ford motor company : Cash Flow Statement - Ford Motor Company In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm's financial status.
Calculate expected return on each stock : State of Economy Probability of State of Economy Return if State Occurs. Calculate the expected return on each stock. Assume the capital asset pricing model holds and Stock A's beta is greater than stock B's beta by 0.25, what is the expected market ..
Determine the amount of net income blue bayou : Determine the amount of net income Blue Bayou would report on the 2013 income statement, assuming that Blue Bayou received $29,000 of cash revenue. What is the amount of net cash flow from operating activities for 2013
Explain how each of the following posting errors affects : Explain how each of the following posting errors affects a trial balance.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd