How much will each polluter have to abate in an efficient

Assignment Help Business Economics
Reference no: EM132368768

Suppose that there are two polluters in San Diego, currently producing 20 tons of pollution per month each, for a total of 40 tons. The local govt. decides to reduce pollution by 25 tons per month (to a total of 15 tons/month). The marginal costs of abating pollution for each polluter are given by MAC1 = 4 + (A1/2) (TAC1 = 4A1 + (A1) 2 /4) and MAC2 = A2 (TAC2 = (A2) 2 /2). How much will each polluter have to abate in an efficient allocation?

a) A1 = 11, A2 = 14

b) A1 = 12.5, A2 = 12.5

c) A1 = 14, A2 = 11

d) A1 = 0, A2 = 25

Reference no: EM132368768

Questions Cloud

What is the consulting firm going to recommend : As a production manager, your job depends on your ability to minimize the cost of production. You hire a consulting firm, and its report suggests
Government policies that affect supply chain or logistics : What would be a good article about global government policies that affect supply chain or logistics?
Savings for society of achieving an efficient allocation : Compared to a uniform standard, how much are the savings for society of achieving an efficient allocation?
What is the emissions charge that if imposed : Suppose that there are two polluters in San Diego, currently producing 20 tons of pollution per month each, for a total of 40 tons.
How much will each polluter have to abate in an efficient : Suppose that there are two polluters in San Diego, currently producing 20 tons of pollution per month each, for a total of 40 tons. The local govt.
Short-run average total cost curve and long-run average cost : What happens to the short-run average total cost curve and long-run average cost curve of a firm that hires clerical workers?
Monetary policy has not yielded any results : Over that same time its economy has not grown. Explain why this monetary policy has not yielded any results.
Develop a mathematical description for the state space : Software Engineering Methodologies - Develop a mathematical description for the state space of the system and present it in a schema in the Z specification
Illustrate hat trick situation in a diagram : Illustrate Hat Trick's situation in a diagram. In the long run we could expect some firms to leave the industry. Suppose that Hat trick is one of the survivors

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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