Consider two cities, each of which initially experiences 100 tons of pollution per day (50 tons from each polluting firm). City A imposes a pollution tax, resulting in an overall pollution reduction of 20% and a decrease in equilibrium employment. City B implements a uniform-reduction policy under which each firm cuts its pollution by 20%. Which city will experience a large reduction in equilibrium employment? Illustrate with a graph
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- Only Graph it please! “Summer open-air concerts are a pure public good in a small town. The average cost of each concert per night is constant at $500. Explain why it would be inefficient to require each resident of a community to hire their own orchestra at the $500 rate for each concert. Assuming that the marginal benefit of the first concert is $25 for each of the 1,000 residents of the community, prove that it will be efficient to have more than one concert per summer. If the concert were financed with voluntary contributions, what conditions would have to prevail to achieve the efficient number of concerts per summer?” Identify your final group answer with the subject "Final Response".Marginal Abatement Costs: The marginal abatement costs of three firms are provided in the table below on page 109. Each firm is emitting now 10 tons/week. Therefore, the total emission of all firms is 30 tons/week. Suppose that society wants to reduce the level of emission by 50%, to 15 tons/week. Calculate the total cost of reducing the level of emission to 15 tons/week Assuming equiproportionate decrease in emissions which of the following is correct: 69 96 100 Assuming equimarginal decrease in emissions which of the following is correct: 69 96 100In 1998, California became the first state to adopt rules requiring many sport utility vehicles, pickups, and minivans to meet the same pollution standards as regular cars, effective in 2004. As the deadline drew near, a business group (which may have an incentive to exaggerate) estimated that using the new technology to reduce pollution would increase vehicle prices by as much as $7,000. A spokesperson for the California Air Resources Board, which imposed the mandate, said that the additional materials cost was only about $70 to $270 per vehicle. Suppose that the two major producers are Toyota and Ford, and these firms were price setters with differentiated products. Show the effect of the new regulation. Is it possible that the price for these vehicles would rise by substantially more than the marginal cost would? Explain your answer.
- The table below shows current carbon emissions and the cost of reducing carbon emissions for three industrial firms. The government introduces a cap-and-trade policy to regulate carbon emissions. The total cap on emissions is 180 tonnes of carbon, and each firm receives an initial allocation of tradable permits for 60 tonnes of carbon emissions. Current carbon emissions Firm A B C (tonnes) 80 100 70 a. Firm A will buy 40 emission ✓ Firm C. Cost of reducing emissions by 1 ton ($) 150 200 50 Firm B will sell 20 emissior Firm C. Instructions: Round your answer to the nearest whole number. b. To break even, the selling firm must receive $ 150Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 20 E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 100.5E. The adoption costs for the new technology are $4. If the government raises the tax on emissions from $2 to $4, the firm's total costs increase by $ HINT: Total costs include tax payments, total abatement costs, and (if relevant) adoption costs for the new technology. Question 14Select one: a. $20. b. $ 24. c. $10. d. $30.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 $76 for Firm B. What would be the total cost of reducing pollution, if the firms are allowed to trade permits between each other?
- The table below shows the marginal cost for three firms to clean up units of pollution. Marginal Cost ($) to clean... 2 tons of pollution 315.00 880.00 1525.00 Cost for US Steel = $ Cost for Ford = $ Suppose the government enacts a pollution charge of $1055.00 that firms must pay for every ton of pollution they do not clean in the first 3 tons. How much will each firm pay to clean their pollution? Cost for Apple = $ Tax Revenue = Firm US Steel Ford Apple Societal cost to clean 1 ton of pollution 115.00 230.00 1225.00 → ▶ - ▲ 3 tons of pollution 740.00 1225.00 1960.00 SIImagine a firm’s marginal abatement cost function with existing technologies is: MAC = 100 – 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 50 – E. If the government raises the tax on emissions from $4 to $12, the benefits of adopting the new technologies increase by $____11-) Andrew, Beth, and Cathy live in Lindhville. Andrew’s demand for bike paths, a public good, is given by Q = 12–2P. Beth’s demand is Q = 18–P, and Cathy’s is Q = 8–P/3. The marginal cost of building a bike path is MC = 21. The town government decides to use the following procedure for deciding how many paths to build. It asks each resident how many paths they want, and it builds the largest number asked for by any resident. To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a, b, and c per path, respectively, where a + b + c = MC. (The residents know these tax rates before stating how many paths they want.)A-). If the taxes are set so that each resident shares the cost evenly (a = b = c), how many paths will get built?B) Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
- 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 $10Assume that to balance the benefits of providing electricity with its pollution costs, A. Treehugger recommends that the government imposes a tax $0.04 for every kilowatt hour (kWh) of electricity sold. If they do, how much of this tax is actually paid by the customer (consumer’s burden) and how much is paid by the firm (producer’s burden)?Suppose a municipality votes to reduce the combined pollution introduced by three local companies. Presently, each firm cre the area, for a total of 12 pollution units. The government can reduce total pollution in the area to 6 units by choosing between the following two methods: Methods to Reduce Pollution 1. The government imposes pollution standards using regulation. 2. The government issues tradable pollution permits. The costs faced by each firm are different, so it is more difficult for some firms to reduce pollution than others. The following table shows the cost faced by each firm to eliminate each unit of pollution. Assume that the cost of eliminating all 4 units of pollution (that is, reducing pollution to zero) is prohibitively expensive for all three firms. Firm Firm A Firm B Firm C First Unit of Pollution (Dollars) 55 650 90 Method 1: Regulation Cost of Eliminating the... Second Unit of Pollution (Dollars) 70 800 125 Third Unit of Pollution (Dollars) 110 1,500 180 Next,…