Suppose two utilities, People's Electric and Municipal Energy, each produce 400 tons of pollution per year. The govemment has a goal of eliminating half the pollution, and, in tum, provides 200 pollution permits to each ubility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to trade permits Suppose the cost of eliminating one ton of pollution for People's Electric is $500 and the cost of eliminating a ton of pollution for Municipal Energy is $550 The total cost of each utility eliminating 200 tons of pollution is 5 (Enter your response as a whole number) If the two utilities buy and sell permits with each other, then the minimum cost of eliminating 400 tons of pollution is $ Enter your response as a whole number)

Suppose two utilities, People's Electric and Municipal Energy, each produce 400 tons of pollution per year. The govemment has a goal of eliminating half the pollution, and, in tum, provides 200 pollution permits to each ubility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to trade permits Suppose the cost of eliminating one ton of pollution for People's Electric is $500 and the cost of eliminating a ton of pollution for Municipal Energy is $550 The total cost of each utility eliminating 200 tons of pollution is 5 (Enter your response as a whole number) If the two utilities buy and sell permits with each other, then the minimum cost of eliminating 400 tons of pollution is $ Enter your response as a whole number)

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

You are considering adding a new software title to those published by your highly successful software company. If you add the new product, it will use capacity on your disk duplicating machines that you had planned on using for your flagship product, "Battlin' Bobby." You had planned on using the unused capacity to start selling "BB" on the West coast in two years. You would eventually have had to purchase additional duplicating machines 10 years from today, but using the capacity for your new product will require moving this purchase up to 2 years from today. If the new machines will cost $115,000 and can be expensed under Section 179, your marginal tax rate is 21 percent, and your cost of capital is 16 percent, what is the opportunity cost associated with using the unused capacity for the new product? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Opportunity cost
Jeff, a 56 year old professor is subject to a 28% tax rate. He has had a family emergency and must withdraw $5,000 from his IRA to fund it. How much money will he owe the government for this withdrawal?
Tex-House builds and sells houses for $200,000 each. The firms fixed costs are $3,000,000. 50 houses are built and sold each year. Profits total about $2,000,000. The firm estimates that it can change its production process by adding 4,000,000 to investment and $1,000,000 to fixed costs. This would reduce variable costs by $30,000 and increase output by 30 units. To permit sales of the new output, prices would have to be lowered by $20,000 per unit. Should the firm make the change? At the new production level, what price would make profits equal zero? Will the new production situation expose the firm to more or less risk?
After developing the new Personal computer with special functions the company would need to be cautious. Although there are patents out protecting the design of this new computer it is still possible for others to see the design and create something similar based off of it. Although licensing the brand would greatly benefit the cost of production and relieve most of the cost from transportation it would be wise to not give another company the opportunity to see the design. Creating the company in the home-country and exporting would help keep the design to ourselves and is therefore safe. However, doing this will increase the cost of transportation significantly. A third option that the company has is to wholly own a subsidiary. This will allow the company to control all matters regarding the production strategy as well as the marketing aspect. Setting up a wholly owned subsidiary is expensive and a major risk as it requires the parent company to commit 100% of the equity contributed.…
please solve parts d, e
Gabe purchases a $500 bond that has 6 remaining semi-annual 6% coupon payments for $450. What would be his return per half year period? Round entry to 1 decimal place. The tolerance is ±0.4.
(a) A firm increases by 7.2% in the first 6 months and decreases by 9.6% in the second half of year 2. Determine the percentage during the year. (b) The number of trees in the forest at the beginning of this year was 20,000,000 trees, every year 10% of these trees are cut down and 1,750,000 new trees are planted. Calculate how many trees there are in debt at the end of year 2 and explain what will happen to the tree in the long run.
3. You have developed a self-study certification system for those who need credit hours for recertification by your state’s social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sales information. You are researching the options for pricing the courses. Your goal is to achieve maximum revenue to establish funding to maintain and update the system to reflect annual policy changes in licensing requirements. Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Online Self Certifications for Social Work License Certification in Online Counseling Certification as a Group Home Counselor Bundle Customers TR Counseling TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 4a Segment 2 1000 $150 b $90 f $240 4b…
What is the present value or price of a $150 annual perpetuity if the returns on similar contracts are now 7%?
If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what is the maximum profit that can be expected from selling smart phone screen magnifiers? Question 1 options: $ 0, no profit $ 5,617,681 $ 1,717,764 -$ 8,004,171
Suppose that the manufacturer of a gas clothes dryer has found that when the unit price is p dollars, the revenue R (in dollars) is R(p) = -5p² + 10,000p. (a) At what prices p is revenue zero? (b) For what range of prices will revenue exceed $1,500,000? (a) At what prices p is revenue zero? The revenue equals zero when p is $ (Use a comma to separate answers, but do not use commas in any individual numbers.) (b) For what range of prices will revenue exceed $1,500,000? (Type your answer in interval notation. Round to the nearest cent as needed.).
Please answer only subquestion b) from: https://www.bartleby.com/questions-and-answers/the-supply-and-demand-for-wheat-in-the-small-country-tinyland-are-qs-p-and-qd-400-p-respectively.-th/5d8ab60d-7ce6-4200-bf32-3b8b6d1d5a88?source=intercept