2 Suppose that two firms, X and Y, face the following marginal abatement costs (MACXand MACY) and total abatement costs (TACX and TACY) which depend on theamount of abatement each performs (Ax and Ay):MACX = 1.0AxTACX = 0.5Ax?%3D%3DMACY = 3.0AyTACY = 1.5A,2%3D%3DAssume that the combined abatement standard for both firms is 30 units. In otherwords, Ax + Ay = 30.%3DSelect the four statements below that are correct.Note: This exercise combines four test questions. Each correct selection will havethe same weight as a regular test question and will be graded separately, so takeyour time.Select 4 correct answer(s)If the government uses a uniform standard, the combined total abatement costfor both firms is $120.If the government uses a uniform standard, the combined total abatement costfor both firms is $450.If the government uses a uniform standard, the combined total abatement costfor both firms is $1,800.O If the government uses a uniform standard, the combined total abatement costfor both firms is $7,200.O If the government uses a uniform standard, the combined total abatement costfor both firms is none of the above. In the cost-effective solution, Ax = 15 and Ay 15.In the cost-effective solution, Ax = 20 and Ay = 10.%3!In the cost-effective solution, Ax = 45 and Ay 15.O In the cost-effective solution, Ax = 22.5 and Ay = 7.5.O In the cost-effective solution, Ax = 30 and Ay = 0.The total cost savings from implementing the cost-effective solution relative to auniform standard is $15.O The total cost savings from implementing the cost-effective solution relative to auniform standard is $112.50.The total cost savings from implementing the cost-effective solution relative to auniform standard is $120.The total cost savings from implementing the cost-effective solution relative to auniform standard is $450.The total cost savings from implementing the cost-effective solution relative to auniform standard is none of the above.OA unit tax of $12.50 would achieve the standard of 30 total units of abatementfrom the two firms combined.A unit tax of $22.50 would achieve the standard of 30 total units of abatementfrom the two firms combined.A unit tax of $30 would achieve the standard of 30 total units of abatement fromthe two firms combined.A unit tax of $45 would achieve the standard of 30 total units of abatement fromthe two firms combined.OA unit tax of $60 would achieve the standard of 30 total units of abatement fromthe two firms combined.

Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Suppose that two firms, X and Y, face the following marginal abatement costs (MACX and MACY) and total abatement costs (TACX and TACY) which depend on the amount of abatement each performs (Ax and Ay): MACX = 1.0Ax TACX = 0.5AX2 !! %3D MACY = 3.0Ay TACY = 1.5AY2 %3D Assume that the combined abatement standard for both firms is 30 units. In other words, Ax + Ay 30. Select the four statements below that are correct. Note: This exercise combines four test questions. Each correct selection will have the same weight as a regular test question and will be graded separately, so take your time. Select 4 correct answer(s) If the government uses a uniform standard, the combined total abatement cost for both firms is $120. If the government uses a uniform standard, the combined total abatement cost for both firms is $450. If the government uses a uniform standard, the combined total abatement cost for both firms is $1,800. O If the government uses a uniform standard, the combined total abatement cost for both firms is $7,200. O If the government uses a uniform standard, the combined total abatement cost for both firms is none of the above.

Suppose that two firms, X and Y, face the following marginal abatement costs (MACX and MACY) and total abatement costs (TACX and TACY) which depend on the amount of abatement each performs (Ax and Ay): MACX = 1.0Ax TACX = 0.5AX2 !! %3D MACY = 3.0Ay TACY = 1.5AY2 %3D Assume that the combined abatement standard for both firms is 30 units. In other words, Ax + Ay 30. Select the four statements below that are correct. Note: This exercise combines four test questions. Each correct selection will have the same weight as a regular test question and will be graded separately, so take your time. Select 4 correct answer(s) If the government uses a uniform standard, the combined total abatement cost for both firms is $120. If the government uses a uniform standard, the combined total abatement cost for both firms is $450. If the government uses a uniform standard, the combined total abatement cost for both firms is $1,800. O If the government uses a uniform standard, the combined total abatement cost for both firms is $7,200. O If the government uses a uniform standard, the combined total abatement cost for both firms is none of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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