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The Pristine River has two polluting firms on its banks. Acme Industrial and Creative Chemicals each dump 100 tons of glop into the river each year. The cost of reducing glop emissions per ton equals $75 for Acme and $225 for Creative. The local government wants to reduce OVERALL pollution from 200 tons down to 100 tons.
A) Typically, the government would not know the cost of pollution reduction for each firm. If the government decided to reach its overall goal by imposing IDENTICAL pollution reductions on the firms, calculate the reduction made by each firm, the cost of pollution reduction to each firm, and the total cost of pollution reduction to the firms together.
B) Now suppose the government no longer requires each firm to reduce pollution, but instead requires each firm to acquire pollution permits if it wants to pollute. If the current price of permits is $150 per ton, calculate the pollution reduction made by each firm, the cost of pollution reduction to each firm, and the total cost of pollution reduction. Is this an efficient method of pollution reduction? Explain.
elucidate how income changes along demand curve and why a local builder seeking to maximize income on a small site would be interested in elasticity of demand.
Which fiscal balance is likely to be influenced and Explain how by treating human capital investments the same as physical capital investments.
q.in the early 1980s interest rates on long-term debt were at remarkable levels - above 15percent higher. within a
Currently, the retailer sells 50 suits per week for $200 each. The retailer wants to sell the entire stock of 200 suits during the next year. What should be the sales price?
show the new quantity demanded at that price as we did in class. Also, show that the new total revenue will be greater than then old total revenue.
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather wi..
What is opportunity cost of cheese in France at 2 kilograms to Germany 1 kilogram? Which country France or Germany has comparative advantage in cars at France .25 and Germany .50 output per hours worked? And cheese France 2 kilograms, Germany 1 kilog..
discussions facility costs please respond to the following suppose you have been working with the federal government
The average consumer income is $20,000, and the price of the related good is $1.10. Compute the predicted quantity demanded of X at these prices and income.
Provide a succinct statement regarding the value of the article. III. What new ideas or amplification of existing ideas emerged as a result of reading the article?
Compute the compensated demand (at the new prices) for the following utility functions. Assume I = 1, initial prices are px = 1 = py, and price of x rises to p?x = 3 while py is unchanged.
Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.
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