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Assume the marginal savings from emissions for an industry are given by MS(e) = 30-e and that the marginal damage from emissions is given by MD(e) = e. Suppose that the tax interaction effect corresponds to a welfare loss of $10 per ton of emissions reduced. Suppose further that the cost of collecting revenue from labor taxes is $1.40 for every dollar collected ($1 for revenue plus 40 cents of deadweight loss). a. Plot marginal damage and marginal savings from emissions for this industry. What is the efficient level of an emissions tax, ignoring the revenue recycling and tax interaction effects? Derive the results graphically. b. Now take into account the tax interaction effect. What is the efficient number of marketable permits, if the permits are initially distributed for free? Derive the results graphically. c. If the permits in part (b) were initially auctioned, what would be the total surplus and what would be the magnitude of the tax interaction effect, the revenue recycling effect, and the Pigouvian effect?
Find out the market structure (competition, monopolistic competition, oligopoly, and monopoly) that best characterizes the infant formula industry.
Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information. what is the total cost of production when the firm hires 7 workers.
riority mail has been one of the most profitable products for the U.S Postal service, between 1995 -1999 and accounting for almost 8% of the Postal Service's mail revenue. Because the Postal Service lost $480 million in the fiscal year ending Sept..
Explain the difference between a monopoly and an oligopoly, and a cartel and provide an example of a monopoly, an oligopoly, and a cartel.
if you borrow 3000 and pay back 3410 after 1.5 yearsa what is the interest rate charged if the payment period is 1.5
compare them over a period equal to the life of the shorter-lived alternative D) compare the present worth over one life cycle of each alternative. Explain why. Do not waste time just selecting a,b,c, or d. You will not be rated.
In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units
Marketing Strategy :Value Proposition,Critical Issues,Financial Objectives,Marketing Objectives,Target Market Strategy,Messaging,Branding
Discuss the roles and responsibilities of three other professions in the health sciences. Discuss three ways in which you may interact with colleagues in other professions. List and describe several things you could do to prepare yourself to interact..
1 given the following reliabilities of components bridge will not collapse in a series with reliabilities indicated.
What is the role of state law in determining whether an entity will be classified as a corporation for Federal income tax purposes?
a bookstore opens across the street from the university book store ubs. the new store carries the same textbooks but
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