MAC_1 = 11 - 2E_1 MAC_2 = 8.5 E_2, and assume marginal external damages ( MED) from the aggregate emissions of both firms (E_Agg E_1 + E_2) is: MED = .5 E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per- unit tax on emissions. With this tax, the total amount of tax revenue raised is $
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- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12 - .5E_1 MAC_2 = 12 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = (1/3)E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit tax on emissions. The per-unit tax on emissions is $____.Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12-.5E_1 MAC_2 = 12-E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = (1/3)E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit tax on emissions. The per- unit tax on emissions is $ Answer:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC, = 11 - 2E1 , MAC2 = 7 - E2, and assume marginal external damages (MED) from the aggregate emissions of both firms (EAgg = E1 + E2) is: MED = EAgg. Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions is (round your answer to the nearest integer): Answer:
- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 18-2E_1 MAC 2 = 12-E2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E Agg E_1+E_2) is: MED = 5E Agg. To achieve the socially efficient level of aggregate emissions (E Agg), the government institutes a perunit subsidy to abatement. The total (or combined) subsidy payment to the two firms is $_Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC1 = 12 - 2E1 MAC2 = 9 - E2, and assume marginal external damages (MED) from aggregate emissions from the two firms is: MED = EAgg. The socially efficient level of aggregate abatement is (Round your answer to the nearest integer)Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 11 - 2E_1 MAC_2 = 12 - E_2, and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg = E_1 + E_2) is: MED = E_Agg. The socially efficient level of aggregate abatement is ____. (Recall that abatement is how much firms cut back their emissions relative to the no government intervention case)
- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 110.5E_1 MAC_2= 30 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED= .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per-unit tax on emissions. In principle, firms could continue to emit pollution as they were in the absence of government intervention, but by cutting back on emissions, their total compliance costs (tax payment plus total abatement costs) goes down. How much money can firms save if they reduce their emissions to E_Agg in response to the tax? Answer:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 MAC_2 = 10 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per-unit tax on emissions. With this tax, the total amount of tax revenue raised is $____. Answer:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 MAC_2 = 10 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a cap and trade policy and sets the cap equal to the socially efficient level of emissions (E*_Agg). If firm 2 is initially grandfathered 2 permits, it will buy ____ more permits. (Note: your answer can be positive or negative; if it is positive, the firm is buying additional permits; if it is negative, the firm sells permits. So, for example, an answer of -10 implies that the firm sells 10 permits)
- Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 MAC_2 = 10 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per-unit tax on emissions. In principle, firms could continue to emit pollution as they were in the absence of government intervention, but by cutting back on emissions, their total compliance costs (tax payment plus total abatement costs) goes down. How much money can firms save if they reduce their emissions to E*_Agg in response to the tax?Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 MAC_2 = 10 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit tax on emissions. The per-unit tax on emissions is $____. Answer:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 24 - 2E_1 MAC_2 = 16 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = 2E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a cap and trade policy and sets the cap equal to the socially efficient level of emissions (E*_Agg). If firm 1 is initially grandfathered 2 permits, it will buy ____ more permits.