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In the absence of regulation, firm 1 would emit 15 and firm 2 would emit 20. The firms have the following marginal control costs where q1 and q2 are the amount of emissions reduced by each firm.
MC1=0.4q1
MC2=0.5q2
The EPA has determined that emissions should be reduced by 9. What tax level would achieve this goal? How much abatement would be done by each firm?
If instead an emission permit system was established, how much would each firm spend on permits if 26 emission allowances were auctioned off? How much would they spend in total?
If the 26 permits were split evenly between the 2 firms, how much would each firm ultimately spend? How much would they spend in total?
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How many units of phosphorus will these two firms emit if the phosphorus emissions are left unregulated? What is the socially optimal level of phosphorus emissions in the river?
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you are the manager of global opportunities for a u.s. manufacturer who is considering expanding sales into europe.
Total Revenue and profits are maximized at the same level of output if:
Sir Plus has a demand function for mead that is given by the equation D ( p ) = 100 - p . If the price of mead is $85, how much is Sir Plus's net consumer's surplus
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
From the standpoint of current purchasing power (as measured by the CPI), which offer is the most attractive and why?
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