What firm sells their permits and how many do they sell

Assignment Help Macroeconomics
Reference no: EM131293223

There are 3 firms in Bell-land that emit the pollution levels given in the table below when producing their good. The table also shows how much it would cost each firm to reduce the level by one unit.

Firm

Pollution level

Cost to reduce 1 unit of pollution

A

70 units

$20

B

80 units

$25

C

50 units

$10

The government wants to reduce pollution to 120 units.  So it gives 40 pollution permits (tradable allowances) to each firm.   One permit is needed for each unit of pollution dumped.

1. What firm sells their permits and how many do they sell?

2. What firm(s) buys the permits and how many do they buy?

3. Briefly explain why the sellers and buyers are each willing to do sell or buy?

4. What is the total cost of reducing pollution using this method

5. If trading of permits wasn't allowed what would be the cost of reducing pollution to 120 units?

6. Which policy is more efficient?  Which policy do you think the government should do and why?

Reference no: EM131293223

Questions Cloud

What are the benefits and risks associated with segmentation : They argue that technology had made it far too easy to track buyer behavior and personal information. What are the benefits and risks associated with individualized segmentation?
Under principle of lower of cost and net realizable value : Under the principle of lower of cost and net realizable value, when a company has 10 units of inventory A with net realizable value of $50 and a cost of $60, what is the adjustment?
What is producer surplus : Suppose that a monopolist faces a demand of p=a-2q, where a=100 and mc=10. Suppose the monopolist uses 1st degree price discrimination. What is producer surplus?
How is quality of healthcare data defined : How is quality of healthcare data defined? In terms of accuracy, completeness, or relevance? If there are multiple or conflicting definitions of quality, in your opinion, which is the best definition? What are the factors that contribute to poor data..
What firm sells their permits and how many do they sell : 1. What firm sells their permits and how many do they sell? 2. What firm(s) buys the permits and how many do they buy?
What about the opinions of your friends : How do you define public opinion? Can you think of ways your opinion has been formed around certain issues? What about the opinions of your friends?
What did standard rate company record as goodwill : At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book value of the assets of the acquired company were $174 million, its liabilities $115 million. What did Standard Rate Company..
Conduct a brief swott analysis based on the new changes : Read the article on these changes, and conduct a brief SWOTT analysis based on these new changes that includes an argument for the success of the strategies that a fast-food franchise has instituted.
Explain the type of organizational structure : What are the advantages and disadvantages of this structure for implementation of the strategic plan? Would you recommend any changes to the organizational structure? If so, what? If not, why not?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Importance of everett rogers diffusion of innovation

Assess the importance of Everett Rogers' Diffusion of innovation model as a tool for understanding the product adoption tendencies of health care consumers. Provide at least two (2) specific examples of Everett Rogers' Diffusion of innovation mode..

  Business has fallen off greatly at your upscale restaurant

Business has fallen off greatly at your upscale restaurant because of the economic crisis. List four things you can do to win back the loyalty of your past costumers.

  Characteristics of some renewable resources

However, the reputable presumption for some renewable resources is precisely the opposite. What general characteristics of some renewable resources bring this about?

  Discuss comment on the current issue of exporting jobs

In light of the theory of comparative advantage, "Are Any Restrictions On Free International Trade Advantageous. Discuss comment on the current issue of "Exporting Jobs".

  Building strong international competitive position

What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business?

  What was the effect on the worldwide market

What was the effect on the worldwide market for alcoholic beverages of the Eighteenth Amendment to the U.S. Constitution, which banned the sale or production of alcohol in the United States? (what happened to the supply curves, demand curves, and ..

  Write an essay about monopoly

Write an essay about monopoly

  Macropoland a country that is a natural gas and oil

macropoland a country that is a natural gas and oil importer has a natural rate of unemployment at the full employment

  Fdic insured savings account

(a) If the family own no other assets than this house, what is the expected value of their asset? (b) If the family had $25,000 sitting in a FDIC insured savings account, what would the expected value of their assets be? (c) If this family was of..

  Diminishing marginal utility of dollars

A mathematically fair bet is one in which amount won will on average equal the amount bet,for example, when a gambler bets say, $100 for a 10% chance to win $1000

  Multiple partition requirements

What is the default for Windows Server 2012? How might GPT be useful in servers with multiple partition requirements? Share your recommendations for partitioning with classmates. Cite your resources

  Illustrate what does empirical evidence on the us

Illustrate what does empirical evidence on the U.S. experience with the Earned Income Tax Credit predict will be the effect of the new policy.

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