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Two identical firms save money from polluting. A firm's marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. Two units of emission from firm 1 result in one unit of ambient pollution. Firm 2 has twice the impact on the ambient environment from the same amount of emissions.
a. What are the transfer coefficients for each of the two firms?
b. If firm 1 is given two emission permits and firm 2 is given four emission permits and they are allowed to trade, how many permits will each firm end up with and what will be the price?
c. If instead each firm is given two ambient pollution permits and trading takes place, how much will each form end up emitting and what will, be the permit price?
go the web site containing the penn world table and collect data on real gdp per capita chained series for 19770 for
Starting in late 1970s and continuing through the 2000s, business environment moved toward relying less on government regulation and more on marketplace to get desired economic targets.
this release also states that the federal reserve is in the process of purchasing 1.25 trillion of agency
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Assume that we have a economy with no government and no capital investment that is closed to the outside world.draw a simple circular flow diagram with just firms:downstream firms that product final goods and services for consumption, and upstream..
Calculate the expected utility of each project and identify the preferred project according to this criterion. (c) Is this individual risk averse, risk neutral, or risk seeking? Why?
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