Need Econ Help, Microeconomics

Assignment Help:
Two firms produce a pollutant called Q. The total costs of reducing emissions of Q are as follows for Firm 1 and Firm 2, respectively:
TC1=10+100Q12
TC2=20 + 50Q22.
This means that the marginal costs of reducing emissions of Q are as follows for Firm1 and Firm2, respectively:
MC1=200Q1
MC2=100Q2.
1. Suppose that a regulator has determined that total emissions of Q must be reduced by 20 units. Determine the cost efficient levels of emissions reduction that should be undertaken by Firm1 and Firm2. Remember that the equimarginal principle requires that marginal costs be equated across the two polluters for emissions reduction costs to be minimized. (10).

2.Suppose that, instead of the cost efficient levels of emissions reduction, the regulator orders that emissions be reduced by 10 units for each firm (20 units total). How much more will this allocation of emissions reductions cost, compared to the cost efficient levels? (5).

3.Your correct answer in A is the cost efficient allocation of emissions reduction. What else would you have to know in order to determine whether this is an efficient level of emissions reduction? In answering this question, recall the difference between cost efficiency and maximizing net benefits. (5).

Related Discussions:- Need Econ Help

income and cross elasticities of demand, What are the income and cross ela...

What are the income and cross elasticities of demand?  Why might they be useful?  Explain.

#titleELASTICITTY.., CONSIDER THE DEMAND CUVE Q=100-50P DRAW THE DEMAND CUR...

CONSIDER THE DEMAND CUVE Q=100-50P DRAW THE DEMAND CURVE AND INDICATE WHICH PORTION OF THE CURVE IS ELASTIC ,WHICH PORTION IS INELASTIC AND WHICH PORTION IS UNIT ELASTIC

Welfare analysis, Welfare Analysis 1-Of the following four institution...

Welfare Analysis 1-Of the following four institutions for allocating apartment to different people at different prices   i.  The competitive market  ii.  A discriminatin

Calculates suspicion of government , Implicit in these analyses is the fact...

Implicit in these analyses is the fact that without government we could have neither shortage nor surplus.  In large calculates, the suspicion of government is due to it has the po

Microeconomics, I need help on MCQs on international trade and imperfect co...

I need help on MCQs on international trade and imperfect competetion

What does the basic neoclassical model assume about market, What does the b...

What does the basic neoclassical, or traditional, model of economics assume about markets? It supposes that markets are perfectly competitive and smoothly functioning, and thos

Measuring the economic value of education , Measuring the Economic Value of...

Measuring the Economic Value of Education A review of research works regarding the economic value of education shows that it developed in four different directions. They a

Exam, Why is it unusual for yields on longer term notes to be lower than yi...

Why is it unusual for yields on longer term notes to be lower than yields on shorter term notes? 2pts b) Why would any investor buy the 2 year note (instead of the 1 year) given it

What is meant by labor force, What is meant by labor force?    In econom...

What is meant by labor force?    In economics the labor force is the group of people who have a potential for being employed. Normally, the labor force having of everyone above

General equilibrium , How to solve general equilibrium in pure exchange eco...

How to solve general equilibrium in pure exchange economy with 2 consumer and 3 commodities

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd