16.)The demand curve for electrical output of a coal generating power plant is PD = 17000 – Qº. The supply curve for the plant's electrical output is given by PS = 8000 +;QS. Sulfur dioxide 2 emissions from the coal plant impose an external cost equal to $3000 per gigawatt-hour of electricity generated on local residents. What is the marginal benefit of society (MBS) curve for this market? e.) MBS = 17000 – Q f.) MBS = 20000 – Q g.) MBS = 8000 +÷Q h.) MBS = 11000 +÷. 17.) The demand curve for electrical output of a coal generating power plant is pD = 17000 – QD. The supply curve for the plant's electrical output is given by pS = 8000 +Qs. Sulfur dioxide emissions from the coal plant impose an external cost equal to $3000 per gigawatt-hour of electricity generated on local residents. What is the marginal cost of society (MCS) curve for this market? e.) MCS = 17000 – Q f.) MCS = 20000 – Q | 1 g.) MCS = 8000 +÷Q 2 h.) MCS = 11000 +÷Q

16.)The demand curve for electrical output of a coal generating power plant is PD = 17000 – Qº. The supply curve for the plant's electrical output is given by PS = 8000 +;QS. Sulfur dioxide 2 emissions from the coal plant impose an external cost equal to $3000 per gigawatt-hour of electricity generated on local residents. What is the marginal benefit of society (MBS) curve for this market? e.) MBS = 17000 – Q f.) MBS = 20000 – Q g.) MBS = 8000 +÷Q h.) MBS = 11000 +÷. 17.) The demand curve for electrical output of a coal generating power plant is pD = 17000 – QD. The supply curve for the plant's electrical output is given by pS = 8000 +Qs. Sulfur dioxide emissions from the coal plant impose an external cost equal to $3000 per gigawatt-hour of electricity generated on local residents. What is the marginal cost of society (MCS) curve for this market? e.) MCS = 17000 – Q f.) MCS = 20000 – Q | 1 g.) MCS = 8000 +÷Q 2 h.) MCS = 11000 +÷Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2) Suppose the demand curve for a rubber-based product is Q_D=225-0.5P, and the supply curve is Q_S=0.5P-15. If the external cost of the suit from the waste produced by the factory producing the item is MEC-Q, calculate: (a) Competitive price and quantity when there is no control over the waste disposal of the factory. (b) Price and quantity at the socially optimal level.
Imagine 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 $____
Suppose the marginal benefit (MB) and marginal cost (MC) curves for emitting particulate matter are given by the following schedules, where E is the quantity of emissions per period. The marginal benefits and costs are measured at the quantities of emissions shown. E/Period MB ($ MC ($) 0 230 0 200 190 10 400 150 30 600 110 50 800 70 70 1000 30 90 Use the information above to calculate the tax rate that would achieve the efficient rate of emissions. Efficient Tax Rate =$__ per unit of pollution
Example: Question 4a.) Arthur’s demand to reduce electric and magnetic fields (EMFs) is P = 20 – 2 Q, whileRonald’s demand is P = 15 – 3 Q. If the marginal cost of reducing emissions is equal to$15 and is constant, what is the optimal amount of EMF reduction? b.) What Lindahl prices would you charge Arthur and Ronald? What might prevent you fromcollecting these prices?c.) How would your answers change if the marginal cost of reducing emissions was equal to$10 and is constant?d.) What are the consumer surpluses of Arthur and Ronald in c.)?
3) The supply and demand of sugar are given as Q. = 5P, Q = 250- P where Q, is tons supplied per year, P is the price per ton; Qa is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar. Assuming that sugar is sold in a competitive market, a) What is the market price? How many tons of paper will be produced per year at that price? b) What is the efficient output of paper? c) What is the amount of total Pigouvian tax to achieve efficiency? d) What is the amount of total Pigouvian subsidy to achieve efficiency?
i will 10 upvotes urgent .
f.) What is the dead weight loss of allowing the market for plastic bags to operate competitively, free of government intervention?
1. A firm's marginal abatement cost function is given by MAC = 200-5E. Suppose that, after adopting new abatement technology, the firms marginal abatement function becomes MAC = 160-4E. Costs are in dollars per tonne and emissions are in tonnes per year. The firm is given 20 tradeable pollution permits (each permit allows it to emit one tonne of pollution) and the current market price per permit is $100. a)Given no change in the permit price how many tonnes of pollution will the firm emit? b)What will be the firms total abatement cost? Will it buy or sell permits and how many? c) What will be the net cost to the firm after trading? What will be the net gain to the firm from adopting the new abatement technology
2
To model the effects of a carbon tax on CO2 emissions, policymakers study the marginal cost of abatement B(x), defined as the cost of increas- ing CO2 reduction from x to x +1 tons (in units of ten thousand tons- Figure 4). Which quantity is represented by the area under the curve over [0, 3] in Figure 4? B(x) ($/ton) 100 75 50+ 25- 1 3 Tons reduced (ten thousands) FIGURE 4 Marginal cost of abatement B(x).
Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 6 - %3D 0.5E. With an emissions tax of $4, the benefits of adopting the new technologies equal $. Please round your final answer to two decimal places if necessary. Answer:
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