User Account

All Pages

Need Econ Help, Microeconomics

Assignment Help:
Two firms produce a pollutant called Q. The total costs 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.
1. Suppose that a regulator has determined that total emissions of Q must be reduced by 20 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. (10).

2.Suppose that, instead of the cost efficient levels of emissions reduction, the regulator orders that emissions be reduced by 10 units for each firm (20 units total). How much more will this allocation of emissions reductions cost, compared to the cost efficient levels? (5).

3.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 this is an efficient level of emissions reduction? In answering this question, recall the difference between cost efficiency and maximizing net benefits. (5).

Related Discussions:- Need Econ Help

Concept of elasticity of demand, Question (a) Describe clearly the thre...

Question (a) Describe clearly the three concepts of elasticity of demand. Use appropriate examples and diagrams to support your answer. (b) Consider you have been appointed

Price floor , Suppose that the U.S. Department of Agriculture (USDA) admini...

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per hu

Private returns versus social returns, Private Returns Versus Social Return...

Private Returns Versus Social Returns As there is subsidisation of education by the state in all countries (and a little higher subsidisation in developing countries) it happe

Describe pay-as-you-go pension plan, Q. Describe pay-as-you-go pension plan...

Q. Describe pay-as-you-go pension plan? Pay-As-You-Go Pension: A pay-as-you-go pension plan sponsor basically just pays for pension benefits to retired plan members out of its

Assignment, what is the theory of second best ? prove the theorem with the ...

what is the theory of second best ? prove the theorem with the help of a diagram .

Cost theory, if marginal cost descreases then what else is effected by this...

if marginal cost descreases then what else is effected by this

Help, #questioSuppose the US and Mexico both produce semiconductors and aut...

#questioSuppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in au

Consumer choice involving risk, CONSUMER CHOICE INVOLVING RISK: The tr...

CONSUMER CHOICE INVOLVING RISK: The traditional theory of consumer behaviour does not include an analysis of uncertain situation. Von Neumann and Morgenstern showed that under

Hw, hi, how much does it cost for you guys to write a 5-6 pages on a articl...

hi, how much does it cost for you guys to write a 5-6 pages on a article on supply and demand? However, on the 5-6 pages it wont all be writings..i need a few graphs. i would need

Nash equilibrium, Define Nash equilibrium

Define Nash equilibrium

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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