What is the optimal degree of air cleanliness after change

Assignment Help Econometrics
Reference no: EM13206029

Quantity of Clean Air (%) Marginal Cost ($) Marginal Benefit ($)

0 50,000 600,000

20 150,000 360,000

40
200,000 200,000

60 300,000 150,000

80 400,000 120,000

100 Infinite 0

a)What is the optimal degree of air cleanliness?

b)What is the optimal degree of air pollution?

c) Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optimal degree of air cleanliness after this change?

Reference no: EM13206029

Questions Cloud

How do variable interest rate loans protect creditors : Many home mortgages in recent years have been made with variable interest rates. Typically, the interest rate is adjusted once a year based on the current rates on government bonds. How do variable interest rate loans protect creditors from the ef..
Historical philosopers that started beginning of formal : Historical philosopers that started the beginning of formal discipline?
Are you officially unemployed and discourage worker : Suppose you are able bodied and intelligent, but lazy. You would rather sit home and watch tv than work, even though you know you could find an acceptable job if you looked. a. Are you officially unemployed b. Are you a discourage worker
Discuss implications of each in terms of marketing strategy : What examples of the major types of buying situations do you see in the case study of boeing? Discuss the implications of each in terms of marketing strategy?
What is the optimal degree of air cleanliness after change : Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..
Explain specific effects of price controls at given prices : Identify and explain specific effects of price controls at given prices. Using the hypothetical information in the table on the market for gasoline, complete the following questions: Price of Gasoline (per gallon) Quantity Demanded
Vessels serving the right side of his brain : A small blood clot became lodged in one of the vessels serving the right side of his brain and restricted blood flow to a portion of his right precentral gyrus. Many neurons in that area were damaged or destroyed and, as a result, Joseph is partially..
Identify the result on the equilibrium price and quantity : The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
Ethical dilemma from perspective of rationality-respect : Analyze the following ethical dilemma from the perspective of rationality and respect (Dilemma Tucker & Marcuson, 1998). A local nonprofit organization that networks with other service agencies in the area was designed to fill gaps in needed services..

Reviews

Write a Review

Econometrics Questions & Answers

  How to select the better system based on bc analysis

A city government is considering two types of town dump sanitary systems, as shown below. Select the better system based on BC analysis at 8% social discount rate (same as MARR). Design A Design B Initial investment $400,000 $300,000

  Calculate vipsanas average fixed cost per day

Vipsana's Gyro House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a rent of $20 per day. Answer questions 17-10 accordingly.

  Compute the coefficient of determination

)TLC Lawn Care, Inc. provides fertilizer and weed control services to residential customers. Its seasonal services package, regularly priced at $250, includes several chemical spray treatments. As part of an effort to expand its customer base, TLC..

  Which it believes will have zero salvage value at the end

The Acme chemical company paid $45000 for research equipment, which it believes will have zero salvage value at the end of its 5 year life. If the straight line (SL) method is used, what will be its value after 2 years

  What is the book cost of the stainless steel pump

A pump has faild in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used staniless steel pump that should last 3 more years has been sitting in the maintenance shope for a ..

  Define are goods x and z substitutes or complements

The demand curve for product X is given by Qxd = 5000 - 5Px - .1Pz where Pz = 50 a. What is the own price elasticity of demand when Px = $100? Is demand elastic or inelastic at this price What would happen to the firm's (total) revenue if it decid..

  What if the price level unexpectedly falls

Full-employment level of real output is $250 and the initially the price level is 100. Use the short-run aggregate supply schedules above to answer the questions that follow a)What will be the level of real output in the short run if the price leve..

  Explain why sharp rise in oil prices might not necessary

Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..

  Compute the wacc for the financing scenario

Tiffany Baking Co. wants to arrange a $50 million in capital for manufacturing a new consumer product. The current financing plan is 60% equity capital and 40% debt capital. Compute the WACC for the following financing scenario.

  How much did the investor withdraw at the end of year 8

A careful investor saved $1,200 each year for 20 years. One year after the savings period ended, the investor withdrew $7,500 each year for a period of 5 years. In the sixth and seventh year, the investor withdrew $4,500 each of those years.

  What price should you charge to maximize revenues

Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 typ..

  What are the levels of short run output for okuns law

Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy b. Consider another economy in which the unemployment rate over the next three year..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd