Josel owns an energy company. He produces electricity from solar energy and wind energy. The technology is as follows Field Green Field (10 acres) Red Field (12 acres) Solar Energy 2 acres needed for each unit 3 acres needed for each unit Wind Energy 2 acres needed for each unit 1 acre needed for each unit Outside merchants buy and sell solar energy and wind energy at prices Ps= $2 and Pw $4, respectively. Suppose that Josel wants to spend 20 dollars of his income on wind energy and the rest on solar energy. Then,
Josel owns an energy company. He produces electricity from solar energy and wind energy. The technology is as follows Field Green Field (10 acres) Red Field (12 acres) Solar Energy 2 acres needed for each unit 3 acres needed for each unit Wind Energy 2 acres needed for each unit 1 acre needed for each unit Outside merchants buy and sell solar energy and wind energy at prices Ps= $2 and Pw $4, respectively. Suppose that Josel wants to spend 20 dollars of his income on wind energy and the rest on solar energy. Then,
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hi can you please answer this question
![Josel owns an energy company. He produces electricity from solar energy and wind energy.
The technology is as follows
Field
Green Field (10 acres)
Red Field (12 acres)
Field
Solar Energy
O A. Cw = 5 and C's = 12.
O B. Cw = 5 and C's = 7.
O C. Cw = 10 and Cs = 24.
O D. Cw = 5 and C's = 24.
O E. None of the above.
Green Field (10 acres)
2 acres needed for each unit
Red Field (12 acres)
3 acres needed for each unit
Outside merchants buy and sell solar energy and wind energy at prices Ps= $2 and Pw=
$4, respectively. Suppose that Josel wants to spend 20 dollars of his income on wind energy
and the rest on solar energy. Then,
Josel owns an energy company. He produces electricity from solar energy and wind energy.
The technology is as follows
O B. 10/3 < t < 4.
O c. t < 3.
O D. t < 2.
O E. None of the above.
Solar Energy
Wind Energy
2 acres needed for each unit
2 acres needed for each unit
3 acres needed for each unit
1 acre needed for each unit
Wind Energy
2 acres needed for each unit
1 acre needed for each unit
Outside merchants buy and sell solar energy and wind energy at prices Ps = $2 and Pw =
$4, respectively. Suppose that the government wants to encourage the production of solar
energy (and thus discourage completely the production of wind energy, i.e., Qw = 0). Then,
the per-unit tax on wind energy must satisfy
[Hint: If the government taxes the production of wind energy, then Josel receives 4-t
dollars instead of 4 dollars for each unit of wind energy]
O A. 2 < t < 3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca16b239-472b-4e9c-812b-bccda92e148b%2F6be58d69-d5de-4b95-96c0-251e35e85b9b%2Fi5rupnb_processed.png&w=3840&q=75)
Transcribed Image Text:Josel owns an energy company. He produces electricity from solar energy and wind energy.
The technology is as follows
Field
Green Field (10 acres)
Red Field (12 acres)
Field
Solar Energy
O A. Cw = 5 and C's = 12.
O B. Cw = 5 and C's = 7.
O C. Cw = 10 and Cs = 24.
O D. Cw = 5 and C's = 24.
O E. None of the above.
Green Field (10 acres)
2 acres needed for each unit
Red Field (12 acres)
3 acres needed for each unit
Outside merchants buy and sell solar energy and wind energy at prices Ps= $2 and Pw=
$4, respectively. Suppose that Josel wants to spend 20 dollars of his income on wind energy
and the rest on solar energy. Then,
Josel owns an energy company. He produces electricity from solar energy and wind energy.
The technology is as follows
O B. 10/3 < t < 4.
O c. t < 3.
O D. t < 2.
O E. None of the above.
Solar Energy
Wind Energy
2 acres needed for each unit
2 acres needed for each unit
3 acres needed for each unit
1 acre needed for each unit
Wind Energy
2 acres needed for each unit
1 acre needed for each unit
Outside merchants buy and sell solar energy and wind energy at prices Ps = $2 and Pw =
$4, respectively. Suppose that the government wants to encourage the production of solar
energy (and thus discourage completely the production of wind energy, i.e., Qw = 0). Then,
the per-unit tax on wind energy must satisfy
[Hint: If the government taxes the production of wind energy, then Josel receives 4-t
dollars instead of 4 dollars for each unit of wind energy]
O A. 2 < t < 3.
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