+1-415-670-9189
info@expertsmind.com
Determine the status quo level of nitrogen pollution
Course:- Macroeconomics
Reference No.:- EM1369769




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Macroeconomics

Q1) Demand for milk is Q=1000-5p
long run supply function for milk is Q=4p-80. if government's climate change policy is based on polluters pays tax and it decides to tax milk.
a)how will this tax affect equilibrium in the milk market?
b)how would the burden be shared between buyers and sellers of milk?
c)what is the excess burden of this tax?
Q2) A firm in a perfectly competitive industry has invented and patented a new process for making a plastic product q. The new process lowers the firm's average cost curve, meaning that this firm alone can earn real economic profit in the long run.
a)if the market price for q is $20 per unit and the firm's marginal cost is given by MC=0.4q, where q is the daily production for the firm, what will the firm's daily output be?
b) suppose that government finds that the new process pollutes the air and estimates that the marginal external cost of production is MEC=0.5q. If the market price is still $20, what is the socially optimal level of production for the firm? what should the rate of a government imposed tax be in order to bring about this optimal level of production?
c) need a labelled graph.
Q3) Two groups of land users contribute to the pollution of a lake. Both dairy farmers (Group D) and sheep farmers (Group S) use nitrogen to fertilise their pasture. Local government has decided to implement a system of tradable rights to limit the influx of nitrogen into the lake. Government will issue 100 pollution permits. One permit equals 1 tonne. Their respective demand (in t) functions for nitrogen polluting rights are D(d)=100-p and D(s)=20-2p
a) Assume that the price of permits is zero and determine what the status quo level of nitrogen pollution is
b) describe two approaches to allocating the initial entitlements. Comment briefly on the relative merits of each.
c)Assume that each group gets 50 permits (i.e 50 tonnes each). Assuming zero transaction costs, describe post-trade equilibrium quantity and permit price.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap val
Mr. Donald is the CEO in a newly established XY company that deals with the production and sales of electronic across the globe. As an economic consultant, Mr. Donald has ap
What should a firm do if the marginal product obtained from the last dollar spent on capital is greater than the marginal product derived from the last dollar spent on labor
The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a dev
This problem belongs to economics, mainly to macroeconomics and it is explains the county with a fixed or managed exchange rate would consider i.______ its currency if the c
Discuss the importance of the average, the trend, the seasonality, the cyclical, and the random portions of the variation in a data series when trying to forecast the quanti
Suggest three (3) key reasons why documenting solutions to network issues is an important best practice. Speculate on the implications of improperly / incompletely documenti
You wish to predict the sale price of single-family residences in Massachusetts. You collect price and property features data on each property sold in the state for the year