Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society's marginal benefit from pollution reduction is given by MB = 590-3Qtot' where Qtot is the total reduction in pollution. The socially optimal level of firm A's pollution reduction is . Hint: Type integers. reduction is . The socially optimal level of firm B's pollution
Q: Can you draw( i need a graphs) labor supply function : U(c,l)=log(c)+log(l) where, c-represents the…
A: Given Utility function: U(c,l)=log(c)+log(l) .......(1) Given market wage w=10 Total…
Q: nthony has already committed most of his income to his monthly living expenses and saving a few…
A: Given Anthony's remaining budget (m)=$15 per week The price of coffee is 2.50 per cup and the price…
Q: 5 4 3 2 0 12 24 36 48 60 72 84 96 108 120 Quantity (kilos) per day If the government were to give…
A: If the government gives subsidies to avocado farmers (the producer), the supply curve will shift to…
Q: 5) Which of the following statements is not true about utility? We can compare utility across…
A: Consumer Decision-Making: Microeconomics places great significance on consumer decision-making.…
Q: Additional Problem 3: Assume two companies (C and D) are Cournot duopolists that produce identical…
A: Here we are given the market demand function and the total cost functions of 2 firms. These are the…
Q: The price of milk increases from $2.85 per gallon to $3.15 per gallon and the quantity supplied…
A: Elasticity is the concept used by economists to measure the responsiveness of supply to changes in…
Q: Explain Sraffa’s critique of the Marshallian industry supply curve based on diminishing returns…
A: Partial Equilibrium is defined as an analysis which only takes into consideration the effects of a…
Q: The macroeconomy is depicted by the graph to the right. a. The current equilibrium price level and…
A: Equilibrium is where demand equals supply. And Long run output level is where AD = LRAS.
Q: Draw a graph of a perfectly inelastic demand curve. Use the line drawing tool to graph a perfectly…
A: Elasticity is the concept used by economists to measure the responsiveness of demand to changes in…
Q: Using below information answer questions 12, 13 and 14 Suppose there is a market that has market…
A: tax levied on goods increased the price. as we know that price is set by the market mechanism demand…
Q: question 1: In Figure 1 , how does the AD-AS model reflect the idea that governments cannot…
A: A macroeconomic model is the AD-AS, or aggregate demand-aggregate supply model. The aggregate…
Q: If demand for the dollar is high, the price of the dollar is most likely to remain stable fall, then…
A: The exchange rate will rise if there are more dollars demanded than there are dollars available (An…
Q: a. If GDP is $800 and government spending is G₁, the size of Motak's budget deficit is $ b. If…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…
Q: In the Solow Growth accounting model with a capital share of 40% if total factor productivity growth…
A: Under the solow model we have the production function as: Y = AKαL1-αY : output K : capital stock L…
Q: Consider a hypothetical situation at the Mitengo Market in Ndola where there are 1000 identical…
A: The total amount of a good that is desired by everyone at each price is represented by the market…
Q: From the equation of exchange, if both real income (Y) and the quantity of money (M) double and the…
A: The quantity theory of money:- According to the American Economist Irving Fisher, there is a…
Q: On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth…
A: Gross Investment is the sum of a company's expenditures or investments made to purchase capital…
Q: Table 1 contains price and quantity information for two products produced by Apple, the iPhone and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Suppose you are given the following information about a country: What is the total unemployment rate…
A: Unemployment is a persistent issue that arises when certain workers are unable to find employment in…
Q: In an environment in which all education is privately provided, suppose that a family with one child…
A: The budget constraint is the limit of the opportunity set — all potential mixes of consumption that…
Q: a. Complete the following diagram. 1.) Using the line drawing tool, draw a long-run aggregate supply…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. 1 Example 1: Let y = F(l, k) = l¾k₹ be the production function, p = 30, w = 10, and r = 5. Find…
A: This problem could be solved by lagrangian function. The lagrangian function is a mixture of…
Q: Recently the Bank of Canada raised the key policy rate from 2.50% to 3.25%. How could it affect the…
A: Introduction Net present value is used to analyze the project. It will help to take the decision…
Q: Case Study: The barriers to entry are so high in the automotive industry that it is rare to see a…
A: Barriers to entry refers to the obstacles that make it difficult for a business to join a certain…
Q: Use the table to answer the question. Price Quantity Demanded $25 $30 $35 $40 $45 (units) 450 420…
A: Quantity demanded is negatively related to price. Quantity supplied is positively related to price.…
Q: e level LRAS SRAS G
A: The demand pull inflation is a result when Aggregate demand is being pushed up by the major…
Q: If a 29 percent increase in the price of Cheerios causes a 28 percent reduction in the number of…
A: Ans. The price elasticity of demand measures the responsiveness of the percentage change in quantity…
Q: What are the advantages of capitalist economy
A: In a capitalist economy, the production of all the products s and services relies on the demand and…
Q: hich of the following is NOT one of economic roles of government? A. Provision of Public Goods…
A: Government plays the critical role in the economic development of country. Government tends to drive…
Q: Which of the following must be true if good X is a normal good and income increases? Group of…
A: A normal good is a good whose demand increases with the increase in the consumer's income keeping…
Q: Figure 5-1 个 Price 10 9 8 7 6+ 4 3 2 A 2 4 6 8 10 12 14 16 18 20 22 24 26 Quantity Demand 41. Refer…
A:
Q: Consumption expenditures are a function of disposable income the real interest rate autonomous…
A: Consumption is the total amount of products and services that a person utilises to fulfil their…
Q: Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is…
A: A cost is the worth of money that has been expended in the production or delivery of a good or…
Q: a) Explain the nature of an indifference curve map, making reference to the graph below. QUANTITY…
A: Introduction The indifference curve shows that a consumer is indifferent to the combination of two…
Q: A bakery needs to replace its old oven that has broken. It is considering the following options. Use…
A: Given Oven A Oven B Initial cost $4500 $7000 Annual operating cost $700 $500 Salvage…
Q: brium price will ablished. develops at the original price. and equilibrium quantity will as a new…
A: Supply A basic economic notion called supply refers to the total amount of a particular commodity…
Q: Now suppose the G rises by 1,000. Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r…
A: Given Information Y = 7,000G = 4,000 T = 2,000 C = 150 + 0.75(Y −T ) I = 1,000 − 50rGiven that : G…
Q: Suppose the demand for L.L. Bean coats is illustrated in the figure to the right. Suppose the price…
A: Revenue refers to the total amount of income that is generated from selling goods and services ,…
Q: Explain how each of the following will affect the consumption and saving schedules (as they relate…
A: Saving Money that people do not use is what it alludes to. Savings is the amount of money that…
Q: The value that is closest to the rate of return for the following cashflow is. Year 10 11 2 13 4 O…
A: Given Year Cash flow 0 -200 1 100 2 100 3 100 4 100 We know that at IRR, NPV=0 Let…
Q: When does the supply of loanable funds increase? The supply of loanable funds increases when…
A: Financial institutions acts as intermediaries between the lenders and the borrowers . The deposits…
Q: wo power plants operate in the same town. Each plant currently emits 7 tons of emissions per wear or…
A: When the act of consumption or production affects the third party who is not involved in the process…
Q: Using the estimates of some real-world income elasticities of demand provided in your textbook, put…
A: It describes a situation in which demand for a commodity rises with rising consumer income and falls…
Q: With the same inverse demand function p = 50 - Q in a Cournot duopoly, what are the equilibrium…
A: Demand function can be expressed mathematically as a relationship between the quality of the…
Q: Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of…
A:
Q: Complete the following table with the tax revenue collected and deadweight loss caused by each of…
A: The values of deadweight loss and tax revenue are already calculated in the answer and explained how…
Q: Host nations have adopted competition policy and anti-dumping law. Examine the characteristics…
A: Tacit collusion arises when the companies collude without any formal communication or written…
Q: PRICE (Dollars per used textbook) 240 200 160 Jake 0 0 1 B A Latasha O Nick 0 Rosa 0 □ Tim 4…
A: Producer surplus is the area below price and above supply curve. Consumer surplus is the area below…
Q: A number of economists contend that official measures of Canadian gross private investment…
A: GDP calculates the monetary value of the final goods and services—those purchased by the…
Q: Inverse demand functions are PA = 10 - QA and PB = 5 - 0.5QB. Under a two part tariff, fixed fee…
A: Given information Pa=10-Qa Pb=5-0.5Qb
Step by step
Solved in 3 steps
- Economists sometimes shock noneconomists by stating that they do not favor the complete elimination of pollution. Explain the rationale for this position.Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society’s marginal benefit from pollution reduction is given by MB = 590 – 3Qtot, where Qtot is the total reduction in pollution. What is the socially optimal level of each firm’s pollution reduction?Firm A currently dumps 223 tons of chemicals into the local river. Firm B currently dumps 192 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 10 pollution permits. The abatement costs of one ton of pollution is $173 for Firm A and $76 for Firm B. What would be the total cost of reducing pollution, if the firms are allowed to trade permits between each other?
- The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an emission tax. Why might the owner of the mill prefer an emission standard to a technology standard that would produce the same level of emissions? a Because with emission standards the polluter is more flexible in selecting the technology that will minimize her abatement cost Ob. Because polluters usually try to stick to their existing technology O C. Because it has been proven to be easier to implement O d. Because polluters, as all producers are suspicious about new technologiesFirms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society’s marginal benefit from pollution reduction is given by MB = 590 – 3Qtot, where Qtot is the total reduction in pollution. How much total pollution is there in the social optimum?The following table shows the current level of toxic waste dumped by two firms and the marginal cost of cleaning up additional 10 lbs increments of waste. Suppose the government has imposed a pollution tax of $7 per 10 lbs of waste. Calculate the reduction in total pollution and the total cost to the firms of doing so? Current waste (lbs) Cost of reducing by 1st 10 lbs Cost of reducing by 2nd 10 lbs Cost of reducing by 3rd 10 lbs Cost of reducing by 4th 10 lbs Cost of reducing by 5th 10 lbs Firm A 60 $5 $10 $15 $20 $25 Firm B Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 80 $2 $4 $6 $8 $10
- Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society’s marginal benefit from pollution reduction is given by MB = 590 – 3Qtot, where Qtot is the total reduction in pollution. Explain how the social optimum can be achieved if firms are given equal numbers of pollution permits but are allowed to tradeQUESTION 6 Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCg = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society's marginal benefit from pollution reduction is given by MB = 590- 3Qtot where Qtot is the total reduction in pollution. The socially optimal level of firm A's pollution reduction is . The socially optimal level of firm B's pollution reduction is Hint: Type integers.The following table shows the marginal costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Firm Unit to be eliminated A B C D First unit 54 57 54 62 Second unit 67 68 66 73 Third unit 82 86 82 91 Fourth unit 107 108 107 111 Refer to Table 5. If the government charged a fee of $84 per unit of pollution, how many units of pollution would the firms eliminate altogether?
- There are 2 firms: Firm X and Firm Y. Firm X has the following cost to pollution reduction: MCx = 10 + 2Qx Firm Y has the following cost to pollution reduction: MCy = 4 + 4Qy Both firms currently produce 100 units of pollution, for a combined production of 200 units. The government has decided to reduce total pollution to 56 units. To do this, the government introduces 56 tradable permits, giving 28 to each firm. What is the equilibrium price of each permit?The figure below shows the marginal benefit (demand) of polluting for two firms: Alpha and Beta. Before the introduction of a pollution tax, pollution is free, that is, MC = $0 per ton of emissions. Marginal Benefit (MB) to Firm Tax = $100 0 MB BETA MBALPHA 25 50 75 100 Emissions (tons) The government decides to impose a tax on pollution of $100 per ton of emissions. That is, the per-unit the tax is the marginal cost of polluting. Which of the follow are true? (Select all that are true.) a. As a result of the tax, the total emissions will decrease by 50 units b. The tax was intended to decrease production by 50 units for each firm. c. As a result of the tax, both firms will decrease emissions by the same amount d. After the tax is imposed, Firm Beta will emit 50 tons more pollution than Firm Alpha e. Before the tax is imposed, Firm Beta emitted more pollution than Firm Alpha f. As a result of the tax, total emissions from the two firms will be cut in half g. The amount of tax collected…Firm A currently dumps 243 tons of chemicals into the local river. Firm B currently dumps 126 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives Firm A 61 pollution permits and gives Firm B 65 pollution permits. The abatement costs of one ton of pollution is $113 for Firm A and $165 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?