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a. Under a strict command-and-control framework, suppose abatement standards are set equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a unique MAC curve drawn to depict a low-cost abater, a moderate-cost abater, and a high-cost abater. On each graph, identify the abatement level corresponding to a uniform standards approach, and show the level of MAC at that point and the area corresponding to TAC.
b. Now, refer directly to your model, and summarize what would happen qualitatively to the abatement levels of each firm if the equimarginal principle of optimality were used. Explain intuitively why this method would be cost-effective.
Suppose that the investment demand curve in a certain economy is such that investment declines by $100 billion for every 1 percentage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $150 bi..
Economists claim that there are several causes of economic inefficiency in medical care. List three basic causes and, for each, describe why it results in economic inefficiency and poor performance in medical markets.
q.until recently you worked as an accountant earning 30000 annually. then you inherited a piece of commercial real
The game ends when the stack runs out or one of the players takes two notes (whichever comes first). Both players keep illustrate what they have taken to that point.
the set of efficient trades these individuals would rationally make. One of the points on the set of efficient trades you illustrated in your diagram will be a competitive equilibrium.
The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..
Why is it important to adjust for inflation when comparing nominal quantities at different points in time. What is basic method for adjusting for inflation.
How much profit will monopolist make if she maximizes her profit. llustrate what would be value of consumer surplus if market were perfectly competitive.
Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found to the Demand curve.
Some observers argue that the coming of electronic commerce on the Internet signals the arrival of a new era of global marketing, as online retailers of everything from books and music to soft- ware and outdoor gear make it possible to buy products w..
Suppose the demand of the good is P = 10 - Q. A monopolist's total cost is TC = 2 + 4Q. What's the optimal price and quantity of the monopolist? Calculate the monopolist's profit (or loss).
Many professionals believe it is impossible to regulate ethics. Yet, the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate
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