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Assume you are an analyst assessing national costs of mercury abatement. Your staff has estimated the marginal social costs to be MSC = 0.8Q and the marginal abatement cost across polluters to be MPC = 0.65Q, where Q is measured in percent abatement and marginal costs are in millions of dollars.
a) Based on these estimates, what must be the equation for MEC?
b) The equation in part (a) tells us that for each additional 1 percent of mercury abatement, the marginal cost (MC) is:
c) Assume government determines that firms need to abate 20%. What would the price of the pigouvian tax need to be to ensure an abatement quantity of 20%? Pigouvian tax = $_____ million
The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.
Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over the entire period of..
Tom can produce 40 balls per hour or 4 bats per hour. Tessa can produce 80 balls per hour or 4 bats per hour. a. calculate Tom's opportunity cost of producing a ball. b. calculate Tessa's opportunity cost of producing a ball.
Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then if the fed wants the money supply to be $6,228 billion, what is the ..
I have a time series set of data of workers in motor vehicle industry from 1972-2001 as well as average weekly hours of workers in motor vehicle industry
The Manchester Athlete's Club (MAC) is a private, not-for-profit athletic club located in St. Petersburg, Florida. MAC currently has 3,500 members but is planning on a membership drive to increase this number significantly. An important issue faci..
Scores of high school students on a national mathematics exam in Egypt were normally distributed with a mean of 86 and a standard deviation of 4.
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 - 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. a. What is the follower's reaction function QF = - Q..
Yo=1200 Y=C+I+G C=130+.5(Y-T) I=(-400)-(10R) G=150 T=50 1. Compute private savings 2. Compute public savings 3. Compute the value of the equilibrium real rate of interest (R) 4. Suppose G rises from 150 to 200. What is new R?
Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt. Q= 8 - 2p + 0.10I + Px, Where Q is quantity demanded, p is the price, I is inco..
Compared to last year, more television sets are being bought while the selling price has fallen. This could have caused by:
To construct a p-chart for a manufacturing process, 25 samples of size 200 were drawn from the process. The number of defectives in each sample is listed below. a. Calculate the proportion defective in each sample. and b. Calculate the plot p-ba..
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