Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determine the Cost Efficient Levels of Emissions Reduction
Two firms produce a pollutant called Q. The total cost of reducing emissions of Q are as follows for Firm 1 and Firm 2, respectively:
TC1=10+100Q12
TC2=20 + 50Q22.
This means that the marginal costs of reducing emissions of Q are as follows for Firm1 and Firm2, respectively:
MC1=200Q1
MC2=100Q2.
A. Suppose that a regulator has determined that total emissions of Q must be reduced by 21 units. Determine the cost efficient levels of emissions reduction that should be undertaken by Firm1 and Firm2. Remember that the equimarginal principle requires that marginal costs be equated across the two polluters for emissions reduction costs to be minimized.
B. Suppose that, instead of the cost efficient levels of emissions reduction, the regulator orders that emissions be reduced by 10.5 units for each firm (21 units total). How much more will this allocation of emissions reductions cost, compared to the cost efficient levels?
C. Your correct answer in A is the cost efficient allocation of emissions reduction. What else would you have to know in order to determine whether or not this is an efficient level of emissions reduction?
International trade: International trade refers to the exchange of goods and services between countries. Goods sold to other countries are referred to as exports and goods bou
Industrial Policy: Government policies which are aimed at fostering the domestic development of particular desirable or productive industries, in order to enhance productivity, cre
quesinrent
Maurice has the following utility function: U (X; Y ) = 20X + 80Y ?? X2 ?? 2Y 2 where X is his consumption of CDs, with a price of $1, and Y is his consumption of movie videos, wit
How base case NPV analysis is applied in financial risk management
Q1.Define law of demand. Distinguish between individual demand and market demand for Hitachi air conditioners. List the determinants of demand for the same.
Explain how automatic (fiscal) stabilisers may help to lower fluctuations in the business cycle. Definition of automatic stabilisers as built-in to the system in terms of trans
Consider the following duopoly with differentiated goods where x 1 and x 2 denote the amounts of the goods 1 and 2 respectively, with prices p 1 and p 2 . The demand funct
unique product
Principle Agent Problem [Dealing with hidden action] Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes th
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd