Reference no: EM131287486
The Fireyear and Goodstone rubber companies whose factories produce finished rubber and sell it in tothe highly competitive world market at a fixed price of $60 per ton. The process of producing a ton ofrubber produces a ton of air pollution that affects the environment. This 1:1 relationship betweenrubber output and pollution is fixed at both factories.Let the output of Fire-year and Good-stone be QF and QG, respectively. The cost formulas for each firmare as follows:
Fire-year Total cost: C = 300 + 2(QF)2Marginal cost is MC = 4QFGood-stone Total cost: C = 500 + (QG)2Marginal cost is MC = 2QGTotal pollution emissions generated are EF + EG = QF +QG. The marginal damage of pollution is constantper unit of E at $12
a) In the absence of regulation, how much rubber would be produced by each firm? What is theprofit for each firm?
b) The local government decides to impose a Pigouvian tax on pollution in the community. What isthe proper amount of such a tax per unit of emissions? What are the post regulation outputsand profits of each firm?
c) Suppose instead of an emissions tax, the government observes the outcome in part (a) anddecides to offer a subsidy to each firm for each unit of pollution abated. What is the efficient perunit amount of such a subsidy? Again calculate the levels of output and profit for each firm.
d) Compare the output and profits for the two firms in parts (a) through (c). Comment on thedifferences, if any, and the possibility of one or both firms dropping out of the market?
Describe how the references are cited in the text
: Locate a report in a medical journal such as Lancet or the American Journal of Drug and Alcohol Abuse, and describe how the references are cited in the text.
|
Identify and prioritize critical it systems and components
: Create a business impact analysis on SanGrafix a video game design company. The BIA should include a descriptive list of the organization's key business areas. The BIA helps to identify and prioritize critical IT systems and components. A template..
|
Maximum concentrations of smoke
: Find the levels of income at which there is (local) minimum and maximum concentrations of smoke. (Be sure to check your second-order condition.) Find the (local) minimum and maximum values of smoke.
|
Write the given essay assignments
: Do you think poor/ developing countries should continue to burn coal moving forward to continue fast economic development, even if it worsens the effects of climate change?
|
Impose a pigouvian tax on pollution
: The local government decides to impose a Pigouvian tax on pollution in the community. What isthe proper amount of such a tax per unit of emissions? What are the post regulation outputsand profits of each firm?
|
Where is this information located in the report
: Find out how many individuals participated in the study and describe their characteristics (age, gender, and so on). Where is this information located in the report?
|
List the resources that you feel could be beneficial
: Your assignment this week is to develop a plan that you will use to help you stay on track throughout the week. You will list the resources that you feel could be beneficial in your growth as a graduate student.
|
Compare mobile oss including ios and android.
: Compare mobile OSs including iOS and Android.Describe and evaluate magnetic disk systems, include disk arrays.
|
United states economy
: What impact did President Eisenhower's cut on military spending have on the United States economy during the 1950's?
|