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A firm emits 30 tons of a pollutant, before the government begins to regulate it. The firm’s marginal abatement cost curve is given by: MAC = 10*A (A = “tons of abatement”)
a) The government issues an NPDES permit authorizing exactly 20 tons of emissions to this firm.
i) What is the firm’s total abatement cost?
b) Instead of an emissions standard, the government decides to impose an emissions tax of $100/ton
i) How much abatement will the firm undertake?
ii) How much will the firm emit?
iii) What are the firm’s total abatement costs?
iv) How much will the firm pay in emissions taxes?
v) What is the firm’s total compliance cost?
Describe in 100 words or less the condition of “full employment” and explain why, even under the conditions of full employment, there is still a percentage of the labor force who are not working.
Suppose that Kiribati can produce 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can produce 750 tons of breadfruit or 1875 tons of fish. What is the opportunity cost of 1 unit of fish in Kiribati? Which country has a comparative advant..
Compare to provide also demand conditions in both locations. How many people live in every place.
The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand function for its product: Specify the marginal revenue function. Write an equation for the total cost (TC) function in terms of Q. Specify the marginal cost fu..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
A CFA charterholder is the Fund Manager for a non-profit organization. During a presentation regarding the restructuring of their investment portfolio's asset allocation, the Head of the Finance Committee questions the manager. As part of his resp..
Discuss the strategies that a particular company employed to either obtain or sustain a competitive advantage. For example, Microsoft arguably created a competitive advantage by offering a unique suite of products that now reside on many desktops. Th..
Kennywood Amusement Park spends $75,000 each year in consulting services for ride inspection and maintenance recommendations. New actuator element technology enables engineers to simulate complex computer- controlled movements in any direction.
Over the Christmas Break, you are hired by Apple to help make the new iPad. Show completely labeled graph showing the initial equilibrium wage and quantity for the iPad labor market.
Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent.
Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.
Does the company behave like a monopoly or more like a competitive firm? Has the monopoly been cited for monopoly behavior?
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