Gozilla Inc. can generate 100 (CO2) emissions without any regulation. The marginal control cost for Gozilla Inc., associated with emission reduction, is known MC=20+0.5Q where Q is reduced units. Suppose that the regulator impose an emission standard on Gozilla: According to the emission standard, the factory is allowed to emit 40 units. Gozilla Inc. will clean up regulation is units of pollutant under the emission standard. The total control cost for Gozilla Inc. in this command-and-control Hint: Type integers.
Q: Economist T. Yntema estimated the short-run total cost function of the United States Steel…
A: Total cost is the sum of fixed cost and variable cost. Fixed cost is that part of the total cost…
Q: define Aggregate Demand, give a couple of examlples tied to todays current events (a couple…
A: A market, industry, or economy's aggregate demand is the sum of consumer demand for all final goods…
Q: A housewife bought a brand new washing machine costing Php 15,000 if paid in cash. However, she can…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Why did ancient Rome advocate natural economy and oppose commodity economy? Explain in detail
A: Economy: An economy is a system of interconnected activities in production and consumption that…
Q: The Brady family have a weekly budget of €200 to be spent on Food (F) and Other Goods (OG), which…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Q2. Bob's wealth is $2500. However, he faces a 50% chance of suffering a $900 loss. His utility…
A: utility addresses the satisfaction that purchasers/consumers get for consuming a decent or…
Q: A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant…
A: Opportunity costs are the hidden expenses incurred when starting a new enterprise. In other terms,…
Q: Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment
A: Introduction: The loan amount is $5000 which has to repay in 2 years by making monthly payments.…
Q: A Civil Engineer is considering establishing his own company. An investment of $4,000,000 will be…
A: Future worth, which is based on an estimated growth rate, is the value of a current asset at a…
Q: Ghana’s debt in order to meet IMF’s debt sustainability levels.
A: There are a number of options available to the Minister when it comes to restructuring Ghana's debt.…
Q: Which of the following are true regarding the figure? Please select ALL that apply. ↑price EX 24 16…
A: When the price changes and increases from 10 to 16, Quantity decreases from 100 to 70. Price…
Q: If the reserve requirement is 10% and we want to increase the money supply by $50 billion, the Fed…
A: Reserve Requirement = 10% Increase in Money Supply = 50 billion
Q: 2) The Penn World Table includes several GDP figures. Suppose that you want to compare the standard…
A: 2) First of all, we have to know the term standard of living. Standard of living actually measures…
Q: What should be the value of a so that Player 1 will have a dominant strategy? PLAYER 2 C D (2,4)…
A: Strategic dominance can be understand as any player will choose the best/better strategy…
Q: Gerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing.…
A: given that, Cost of the car = $15,000 Depreciation rate = 30%
Q: 8. Consider the OLG model with capital. Each individual is endowed with y units of the consumption…
A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…
Q: Suppose that we are considering the market for windmills. The private demand for electric cars is…
A: Disclaimer: _ since you asked multipart question, we are solving 1st 3 parts as per guidelines. If…
Q: Is discretionary fiscal policy difficult to conduct when the economy is in recession? A. No,…
A: Recession: A prolonged period of weak or negative growth in real GDP (output) and a significant rise…
Q: 4. Liam initially has a weekly allowance of €24 to spend on eggs (at €0.40 per egg) and beans (at…
A: Liam will only consume 4 eggs with each tin of beans. This denotes that Liam considers eggs and tin…
Q: Assume that the production function for a certain production process is given by the following…
A: Marginal product is the increase in output produced by employing one more unit of the input.
Q: A new product requires an initial investment of $140,000, and an annual operating expense of…
A: The external rate of return or ERR is defined as the rate of return for a project where the excess…
Q: Consider the Supply curve S-2P and Demand D-9-P, assuming free trade with a global price of p1, what…
A: Free Trade implies a type of trade relationship nations can have with each other. The chief barrier…
Q: Assume the Canadian economy is currently in recession and the government budget is in deficit. (a)…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: brownie has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government…
A: The indifference curve for linear preferences is straight line sloping to downward to right. The…
Q: Suppose you invest $1,000 today, compounded annually, with an annual interest rate of 5.00%. What is…
A: Introduction: The present value of the investment is $1000 which earns an interest rate of 5%. Now…
Q: Part 6 7 David’s utility function for good X and Y is given by U (x, y) = x2 y3 . Where Px, Py and I…
A: Utility refers to the satisafcation. The aim of any consumer is to maximize the utility. The…
Q: Suppose the supply of pocket calculators is given by 6= Q^S - P. Determine the price elasticity of…
A: Price elasticity measures the change in quantity due to change in price. Elasticity can be…
Q: Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to…
A: Here we will find the present value of the gift using the annuity present value formula & the…
Q: . Consider a Solow growth model in which the production function is Yt = 1/2 t AK/2N ¹/², where A =…
A: The steady state is reached where the change in the per capita variables such as the output per…
Q: With the help of supply-demand diagrams, illustrate a binding and a non-binding price floor…
A: Since you have asked multiple question, we will answer first question for you. If you want any…
Q: True or false with reasoning 1)_______When an extra glass of wine is consumed, the total utility…
A: Sol:- since, marginal utility is simply the change in total utility per unit change in the…
Q: Using the theory of "Demographic Transition", make a chart showing the 4 stages and compare in which…
A: Demographic indicators are important indicators of the development factors of the country.…
Q: assume there is a huge pandemic and the US Gov’t requires lockdowns that close many businesses and…
A: Aggregate demand is the sum of consumption , investment , government spending and net export. =>…
Q: 1. Convex Preferences. Consumer Equilibrium and Market Demand. Let Px = $10, Py = $15, and M = $800.…
A: Since you have asked multiple question, we will answer first question for you. If you want any…
Q: Question 3 social cost At a given market price suppose the elasticity of demand is -2.2 and the…
A: Elasticity measures the responsiveness of quantity to changes in the price.
Q: Suppose that the parents of a young child decide to make annual deposits into a savings account,…
A: Given cash flow: Rate of interest =8% compounded continuously. Required: Value of A.
Q: decreasing taxes on financial capital to increase the pace of capital accumulation
A: B. The government can boost economic growth by decreasing taxes on financial capital to increase the…
Q: What causes costs of production to vary with output in the short run? What generally causes costs…
A: The long run refers to a time frame where all factors of production and costs will be variable, and…
Q: uppose that we are considering the market for windmills. The private demand for electric cars is…
A: Positive externality refers to the positive spillover benefits of the good to the third party which…
Q: 4. A company introduced a new product to the market in the first month of the year which was…
A: Price elasticity of demand is defined as the percentage change in the quantity demanded for a good…
Q: Determine the Nash Equilibrium by iterative elimination. Column Row Top Middle Bottom Left (-5,-1)…
A: The method of iterative elimination means the elimination of the whole strategy because it gives…
Q: QUESTION 17 Assume that the demand for a service depends on price and income, where the price…
A: Price Elasticity of demand : (-)0.6 The absolute value of price elasticity is less than, it means…
Q: Do Foreign Currency derivatives such as futures, options, and swaps have an impact on the risks…
A: There are many risks involved in international finance. Some of them are listed below: 1.) One of…
Q: 2006 Price good A BDT 30 good B BDT 100 Quantity 900 192 2007 Price BDT 31 BDT 102 2008 Price 1,000…
A: Nominal GDP measures the market value of goods and services using current prices whereas Real GDP…
Q: Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per…
A: As per the Fisher equation,Real interest rate = Nominal interest rate - Inflation rate
Q: Now suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y).…
A: Utility function : U (x ,y ) = max {aX, bY } Budget Constraint : Px (X) + Py (Y) = M Also its…
Q: et R2unrestricted and R2restricted be 0.54 and 0.30 respectively. The difference between the…
A: Formula to calculate the F - statistics is given as: F = (RU2 - RR2) /q(1-RU2) /(N-k)RU2 :…
Q: The following graph represents the short-run aggregate supply curve (SRAS) based on an expected…
A: Full employment means that unemployment is equivalent to its natural rate. Full employment also…
Q: 3. We study the effects of changes in labor productivity on the labor market in the long run in the…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: How does Health Economics relate to individual Health Paracetamol 2021 2022 Quantity Demanded…
A: The study of efficiency, effectiveness, value, and behavior in the production and use of health care…
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.A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control cost for Avengers, associated with emission reduction, is known MC=10+Q where Q is reduced units. Suppose that the regulator impose an emission standard on Avengers: According to the emission standard, the factory is allowed to emit 20 units. Avengers will clean up units of pollutant under the emission standard. The total control cost for Avengers in this command-and-control regulation is Hint: Type integers.A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, what level of emissions does the firm choose under the tax? A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, how many units did the firm abate relative to the unregulated environment?
- Gozilla Inc. can generate 100 (CO2) emissions without any regulation. The marginal control cost for Gozilla Inc., associated with emission reduction, is known MC=20+0.5Q where Q is reduced units. Suppose that the regulator impose an emission standard on Gozilla: According to the emission standard, the factory is allowed to emit 40 units. The level of reduction in the emission standard could be accomplished through an emission charge (quantity tax or penalty fee on emission). An emission charge of per emission unit would generate the target amount of reduction. Total (tax) revenue the regulator will collect as emission charges would be Hint: Type integers. Do not use thousands separators.There are two towns, A and B, each with a plant emitting pollution. The emission from plant Ais uniformly distributed across both town A and B. The emissions from plant B are local to town B. Despite the difference in affected area, the marginal benefit to either town of abating one unit of pollution from either source is the same, MB(Qi) = 17 − Qi per person, where Qi is total emissions abated from town i’s air. The marginal cost of abatement at plants A and B are MCA(qA) = 200qA and MCB(qB) = 100qB, respectively. If town A has 300 citizens and town B has 200, what is the efficient tax to set at each plant?A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control cost for Avengers, associated with emission reduction, is known MC=10+Q where Q is reduced units. Suppose that the regulator impose an emission standard on Avengers: According to the emission standard, the factory is allowed to emit 20 units. The level of reduction in the emission standard could be accomplished through an emission charge (quantity tax or penalty fee per emission unit would generate the target amount of reduction. on emission). An emission charge of Total (tax) revenue the regulator will collect as emission charges would be . Hint: Type integers.
- Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal abatement costs) for a = 12 - Ea, MACb=12-2Eb MD(marginal damage) = 1/3*E (E indicates CO2 emission) Suppose that the emission trading system is introduced and the right to emit 7 tons is given to power plant A and the right to emit 5 tons is given to power plant B. In order for emission permits to be traded, the price of one unit of emission permits must be at least a certain amount (minimum price) and conversely, how much must be less than a maximum (maximum price), that is, explain the fluctuation range of the emission permit price.Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal abatement costs) for a = 12 - Ea, MACb=12-2Eb MD(marginal damage) = 1/3*E (E indicates CO2 emission) Suppose that the emission trading system is introduced and the right to emit 7 tons is given to power plant A and the right to emit 5 tons is given to power plant B. At this time, explain how the price of CO2 credits is determined and how much each power plant buys or sells.Suppose that Penn Products and Teller Industries are both emitting 30 metric tons of perfluorocarbons (PFCs) into the atmosphere. Regulators wish to reduce emissions to 40 metric tons overall, and plan to achieve this with a system of tradable permits. Penn’s marginal abatement costs are given by MACP = 5eP, where eP is the number of metric tons of emissions that Penn is cutting. Thus, the cost of cleaning up the first metric ton is $5, the second ton costs $10 to clean up, and so on. Teller’s marginal abatement costs are given by MACT = 7.5eT, where eT is the number of metric tons of emissions that Teller cuts. a. The lowest-cost way to reduce emissions is found when both firms’ marginal abatement costs are equalized. Equate Penn’s and Teller’s marginal abatement costs, and solve for eP in terms of eT. For each metric ton that Teller cuts, how many tons should Penn cut? b. Because 20 metric tons are to be cut, we know that eP + eT = 20. Use your…
- QUESTION 9 A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control cost for Ávengers, associated with emission reduction, is known MC=10+Q where Q is reduced units. Suppose that the regulator impose an emission standard on Avengers: According to the emission standard, the factory is allowed to emit 20 units. Avengers will clean up units of pollutant under the emission standard. The total control cost for Avengers in this command-and-control regulation is . Hint: Type integers.Suppose there are only two polluting firms, called A and B, with the following marginal abatement costs: MACA=160 2- e and MACB=100-es, where e represents firm A's emissions in tons and ea represents firm B's emissions in tons. Suppose the government wishes to ensure that the two firms together emit 60 tons of the pollutant and uses a Tradable Emission Permit (TEP) policy. Assume that each TEP allows its holder to emit 1 ton, and that the market for permits is perfectly competitive. a. Suppose the government initially distributes the total number of TEPs it issues equally between the two firms. The permits are distributed free of charge. Once trade in permits takes place, what will be the equilibrium in the market for TEPS (i.e. which firm will buy how many TEPs from the other, and at what price)? b. Briefly describe three problems of setting up a TEP market.Consider an industry with two firms that emit a uniformly mixed air pollutant (e.g., carbon dioxide). The marginal abatement cost functions for Firm 1 and Firm 2 are: MAC1 = 100 - e1 MAC2 = 100 - 4e2 Aggregate emissions for the industry are denoted as E = e1 + e2. 1. In an unregulated environment how many units of emissions does each firm emit? Firm 1’s unregulated level of emissions ____________ Firm 2’s unregulated level of emissions ____________ Total unregulated level of emissions ______________ Suppose a regulator has a goal of reducing the total level of emissions from the amount from the amount you answered in [1] to 25 units. The regulator would like to achieve the goal of 25 units of total emissions in a cost-effective way. To do so it issues 25 permits, 10 are given to Firm 1 and 15 are given to Firm 2. A firm can only emit a unit of pollution if they have a permit for that unit, otherwise they must abate. After the permits are allocated,…