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5. Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard. To meet the standard, 30 units of SO2 must be abated in total. The two firms face the following abatement costs:MAC1=16+0.5A1MAC2=10+2.5A2 where costs are measured in thousands of dollars.
a. Prove that a uniform standard will not meet the cost effectiveness criterion.b. Determine how the abatement levels should be reallocated across the two firms to minimize costs.
If average variable price are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
If the United States lost hundreds of thousands of jobs, how is it that NAFTA was a best decision for the US also probably not for Mexico and Canada
Illustrate what effect does the current supply and current demand have on this product. Describe how each of the 4 factors contributed to the elasticity of the good.
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
What do you think it should have been a good idea for these airlines to cut their frequent-flyer programs in order to earn higher profits.
Show how a UK exporter can avoid exchange risk by covering in either the spot market or the forward market. When will the exporter be indifferent between these two forms of cover.
could you have both a comparative and absolute advantage in trading. If so, what if at all would be the benefit for your country to trade with any other country.
How much does the gross price increase in each market
Discuss the comparative advantage(s) of your selected regional trading blocs. Identify the major risks associated with doing business in the selected trading blocs.
Suppose the relationships hold true and given performance below, what salary would you estimate for each player in 2006.
Assume the market demand curve in an industry is characterized by P=1-Q, where P is the market price and Q is the total quantity supplied to the market. Assume there are three firms in this industry.
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