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Two firms, Cappcore and Tradiola, are each emitting 6 units of pollution, and the government wants to reduce the total level of pollution from the curent level of 12 to 4. To do this, the government caps each firm's allowed pollution level at 2. Each firm must now pay to cut pollution levels by 4 units. A cap-and-trade policy gives each firms allows them to trade permits if they choose. Based on the table below which represents the situation faced y these two firms, what will the firms want to do?
Cappcorepollution reduction units MC of reducing pollution TC of reducing pollution1 $7 $72 10 173 14 314 19 505 26 766 35 111
Tradiolapollution reduction units MC of reducing pollution TC of reducing pollution1 $3 $32 4 73 6 134 9 225 14 366 21 57
If you decide to hold $100 less cash than usual and therefore deposited $100 in cash in the bank, what effect will this have on checkable deposits in the banking system if the rest of the public keeps its holding of currency constant
If market demand is given by the functionQ=1000?P, where P denotes price, how many firms will operate in this long-run equilibrium?c) Suppose the government grants a lump-sum subsidy to each firm that manufactures the product. If this lump-sum su..
Initially, three firms produce homogeneous products. Consider a market with inverse demand per period given by P = 140 - Q. Each firm faces a marginal cost of 20 per unit. As well, each firm faces a fixed cost per period of 500.
What is CEO Toback's most pressing concern and how could he go about addressing this concern?2. Do you agree or disagree with the assessment of the concern and the plan to address this concern? Why or why not?
The Oil Price Information Center reports the mean price per gallon of regular gasoline is $3.79 with a population standard deviation of $0.18. Assume a random sample of 40 gasoline stations is selected.
A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..
Assume that when using the multiple regression in the formula Y = b1X1 and b2X2 + E that X1 represents wages and X2 represents transportation expenses?
Assume that the short run cost and demand data given in the table below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of o..
A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
1) What total output (Q1 + Q2) will you produce to maximize profits 2) Of the total output in part (1), how many units are produced at teh first facility (what is Q1) 3) Of the total out put in part (1), how many units are produced at the second faci..
A company currently sells 1,000 units a year at $25 per unit. The marginal cost of each unit is $12. The company is considering lowering the price by 4%. The company believes that this price discount will increase its economic profits.
Find and expression for capital per worker at the steady state e. Solve for the steady-state output per worker when d = 0.08 and the savings rate = 0.25 f. plot the steady state capital per worker as the savings rate goes from 0.05 to 0.50 in 0.05 in..
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