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Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. The two firms face the following abatement costs:
MAC1 = 18 + 0.7A1 MAC2 = 15 + 3.2A2,
Where costs are measured in thousands of dollars.
a) Prove that a uniform standard will not meet the cost-effectiveness criterion.
b) Determine the abatements for company 1 and 2 under the cost effective criterion.
c) Determine Total abatement cost for both companies under cost effective criterion
d) Are there any cost savings on implementing the cost effective criterion with respect to uniform standards, if so please show the savings
If the economy is facing rising levels of inflation, what would the Fed do with its three monetary control tools? Why does the Fed buy government securities during a recession?
If oligopolists compete hard against each other.
Suppose that your opponent is not playing her Nash equilibrium strategy. Should you play your Nash equilibrium strategy? why or Why not?
The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate the smallest integer price that would make a rm willing to produce a positive amount.
Insurers want to understand the Bay Area market for pediatric physician primary care services, to help decide the appropriate reimbursement rate for a pediatric primary care visit. Let the demand for pediatric visits be Q = 240 – P, and let the suppl..
To be of value, a market segment must meet five criteria. Outline a talk focusing on examples of market segments that clearly fail to meet each of these criteria?
q1. illustrate what is the elasticity of demand if you raise the price of your airlines tickets by 6 also the number of
A cousin of James Darwin, examined the relationship between the height of children and their parents
If the demand curve increase, what will happen to price and quantity?
Netflix has been disruptive to more than one market. Select the market in which you think it has been least disruptive.
What does an increase in fixed costs due to the average cost curve of small firms.
Illustrate what does this mean for the survival of small firms in the industry.
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