4 1. Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board wantsto reduce this level to a total of 20 units between both firms. They decide to allocate 10 permits toeach firm, where each permit will allow 1 unit of emissions per permit. Assume the followinginformation, where TAC is total abatement cost and MAC is marginal abatement cost:a.b.TAC₁=10+.75A,²TAC₂=5+.5A₂²If each firm keeps its 10 permits, how much will they each spend in total to reduce emissions?Is there a more cost-efficient solution than the one you found in part a? Please explain and findthis solution.c. How much will the two firms each spend in total to reduce emissions at the cost-efficientsolution?d.How many permits will be sold? Who will sell them? How much will they sell for?

Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board wants to reduce this level to a total of 20 units between both firms. They decide to allocate 10 permits to each firm, where each permit will allow 1 unit of emissions per permit. Assume the following information, where TAC is total abatement cost and MAC is marginal abatement cost: TAC₁=10+.75A₁² TAC₂=5+.5A₂² a. b. If each firm keeps its 10 permits, how much will they each spend in total to reduce emissions? Is there a more cost-efficient solution than the one you found in part a? Please explain and find this solution. c. How much will the two firms each spend in total to reduce emissions at the cost-efficient solution? d. How many permits will be sold? Who will sell them? How much will they sell for?

Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board wants to reduce this level to a total of 20 units between both firms. They decide to allocate 10 permits to each firm, where each permit will allow 1 unit of emissions per permit. Assume the following information, where TAC is total abatement cost and MAC is marginal abatement cost: TAC₁=10+.75A₁² TAC₂=5+.5A₂² a. b. If each firm keeps its 10 permits, how much will they each spend in total to reduce emissions? Is there a more cost-efficient solution than the one you found in part a? Please explain and find this solution. c. How much will the two firms each spend in total to reduce emissions at the cost-efficient solution? d. How many permits will be sold? Who will sell them? How much will they sell for?

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

B9
16
ctors) on of es 1. Relationship of data usage and bill Data Usage(GB/month) 0 10 20 30 Bill($/month) 10 30 50 70 A. Draw the graph, placing data usage horizontally(on the X axis) and bill vertically(On the Y axis). B. How much is the monthly fixed fee? C. How much is the charge per GB? D. What is the Equation that describes the relationship, where data usage is denoted by D, and bill by B? E. How much would be the charge for 50 GB use per month?
PLS HELP ASAP ON BOTH
Figure A Q Figure B Figure C Price (dollars per unit) 15- Price (dollars per unit) 15 Price (dollars per unit) 15- 14- 13- 12- 11- 10- MC MC 14- 14- 13- 12- 11- 10- „MC ATC 13- 12- 11- 10- ATC ATC MR MR MR 9- 9- 9- 8- 8- 8- 7- 7- 6- 90 100 100 100 1i0 Quantity (units) 90 110 90 110 15 Qua Quantity (units) Quantity (units) Consider a perfectly competitive firm in a short-run equilibrium. Figure shows a firm in bad times because the firm produces units and makes a(n) O A. A; 100; economic loss O B. B; 90; economic profit O C. A; 110; economic loss O D. C; 100; economic loss O E. C; 100; normal profit
Shane teaches guitar lessons. The graph below shows the comparison of his expenses and revenue for one month. r ($) L -1000 000 -600 200 Number of Lessons Expenses Revenue How many lessons must he teach to break even?
ONLY NEED QUESTIONS 5,6,8,10 and 13