Why might producers prefer the tradable-permit option

Assignment Help Macroeconomics

Reference no: EM131919227

Problem

Suppose the government is considering two policies to limit factory air pollution: taxing producers or providing each producer with an allotment of permits they may trade with other producers. If both policies lead to the same amount of pollution reduction, why might producers prefer the tradable-permit option?

Reference no: EM131919227

Questions Cloud

Prepare the lower portion of corpus christi income statement : Prepare the lower portion of Corpus Christi's 2010 income statement, beginning with pretax income for continuing operations

What kinds of questions would you have for the cmo : What kinds of things will you consider? How would the types of products or services affect your answers?

What is the project npv : The annual operating cash flow is $51,197 and the cost of capital is 5% What is the project's NPV if the tax rate is 36%?

What are the primary operations management decisions : What are the primary operations management decisions in each of the following corporations? Consider the following processes that you frequently encounter.

Why might producers prefer the tradable-permit option : If both policies lead to the same amount of pollution reduction, why might producers prefer the tradable-permit option?

Evaluating the purchase of one of two bonds : Assume you are evaluating the purchase of one of two bonds. Bond A is a municipal bond with a yield to maturity of 5.75 percent.

Describe goods and services that make up product experience : Recall the last time you went to a fast-food restaurant such as McDonald's. Describe all of the goods and services that make up your total product experience.

Why does the given change the efficiency of the policy : The city of Seattle limits each household to one can of free garbage collection per week. Why does this change the efficiency of the policy?

Prepare all journal entries using completed-contract method : The remainder of the contract price was billed in 2011 and collected. Prepare all journal entries for 2010 using the Completed-contract method

User Account

All Pages