See attached image for marginal abatement cost table and question 2. Suppose that we are considering an industry made up of 2 firms. Their marginal abatement costs areoutlined below.Emissions (tons/week) Firm 1109876543210Marginal abatements costs ($/ton)Firm 204812162024283646580124681220242836a. Suppose that the government is imposing an emissions tax of $12 per unit of emissions. Underthis policy, what is the level of emissions from each firm? What is the total level of emissions inthe industry? Explain.b. If the tax is imposed at $12 per unit of emissions, how much does each firm spend on abatement?Explain your reasoning.

We should separate the responses to parts (a) and (b) of your inquiry in view of the estimations we…

a. Suppose that the government is imposing an emissions tax of $12 per unit of emissions. Under this policy, what is the level of emissions from each firm? What is the total level of emissions in the industry? Explain. b. If the tax is imposed at $12 per unit of emissions, how much does each firm spend on abatement? Explain your reasoning.

a. Suppose that the government is imposing an emissions tax of $12 per unit of emissions. Under this policy, what is the level of emissions from each firm? What is the total level of emissions in the industry? Explain. b. If the tax is imposed at $12 per unit of emissions, how much does each firm spend on abatement? Explain your reasoning.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What is the relationship between marginal cost (MC) curves and average cost (AC) curves? You may use a graph help you illustrate whenever necessary.
please help
Output AFC AVC ATC MC 1 300 100 400 100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 7 43 103 146 180 8 38 119 156 230 9 33 138 171 290 10 30 160 190 360 Refer to the chart above. The total fixed costs are what?
Only typed answer
calculate and plot the following: No of Units Total Cost 0 5 1 9 2 12 3 15 4 20 5 30 6 42 a) Variable cost b) Fixed Cost c) Average Fixed Cost d) Average Variable Cost e) Maginal Cost
If total revenue is $550 and price per unit is $55 What is the value of output sold?
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Location A B C Fixed Cost 60000 80000 130000 Variable Cost 30 20 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Please solve with proper explanation and calculation
Need answer ASAP no explanation needed