The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The firms were initially abating 46 units of pollution each. Now they can trade pollution permits at a price of $22. As a result, firm A sells permits and firm B buys permits. Both firms are now better off and their total saving will be $. (Enter your answer rounded to the nearest whole number.)
Q: below: The table below shows, respectively, the Federal debt, nominal GDP (in billions of $), and…
A: The debt-to-GDP ratio is a measurement of a nation's debt load that is stated as a proportion of…
Q: 10 Billiong, -12billion is the answer.
A: he current account of a country measures the value of its international trade in goods and services,…
Q: 1 Answer the questions based on the figure below, which is for the country of Quantz. Quantity of…
A: Production Possibilities means to the various combinations of goods and services that can be…
Q: 20 22 LRAS 24 26 OUTPUT (Trillions of dollars) AS AD 28 30 AD þ AS that in January 2026 the…
A: Government policy is a description of the government's political actions, strategies, and goals in…
Q: 6. Plotting the supply of labor In Providence, 120 people are willing to spend an hour working as…
A: The amount of time and effort that an individual is willing and able to allocate towards paid work…
Q: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of…
A: Secure strategy here implies dominant strategy
Q: Price discrimination is the practice of selling goods at different prices to different consumers.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What, according to Keynes, are the normal mechanisms for ensuring full- employment equilibrium given…
A: According to John Maynard Keynes, an influential economist, there are several mechanisms that can…
Q: Assume that only two countries, A and B exist, as shown in the table below. Factor endowments…
A: The Hecksher-Ohlin (HO) Theory states that an economy will export goods that make intensive use of…
Q: Use the black line (plus symbols) to plot the line illustrating the combinations of salad and pizza…
A: The combinations of two commodities that an individual may buy with a certain quantity of money and…
Q: A manufacturer faces the demand function, 20Q + 5P = 120 (where Q is quantity and P is price), and…
A: The profit is maximized where the MR =MC. The Revenue is maximized where the MR =0. Consumer surplus…
Q: In class video we discussed ways for firms to break the Bertrand Paradox result. Which of the…
A: The Bertrand paradox arises in a duopoly situation, where two firms compete by setting prices for…
Q: me right which shows ase for the price of the ct the demand curve producing that nel (a) OR Panel…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The change in the interest rate found in the previous task will lead to a in the quantity of output…
A:
Q: When the actual volume of production is higher than the volume of production at the break-even…
A: Break-even point: it is the degree of production where a firm generates sufficient revenue to cover…
Q: Evaluate at least four ways why the education of women is considered the most cost-effective form of…
A: Human capital refers to the knowledge, skills, abilities, and other intangible qualities possessed…
Q: Matt gets utility from commodities x₁ and x2 and his preferences can be represented by the utility…
A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…
Q: With the aid of a diagram, describe a corner solution and explain the axioms of consumer choice.
A: Indifference curve represents a set of combination of two goods that offer same level of…
Q: Use the orange line (square point) to graph the new supply of loanable funds as a result of this…
A: The neoclassical theory of interest, often known as the loanable funds theory of interest, was…
Q: For the monopoly firm that does not engage in perfect price discrimination, a. marginal revenue…
A: Price discrimination is a practice of charging different prices for the same good to different…
Q: Go to the website for the Observatory for Economic Complexity (https://oec.world/en) and find the…
A: In the pictures given below , we see the different patterns of trade with respect to various classes…
Q: What was the main method by which central banks tried to achieve their inflation targets until the…
A: Inflation refers to a continuous increase in price over a period of time. It can be measured by CPI.…
Q: One way in which the Heckscher-Ohlin model differs from the Ricardian model of comparative advantage…
A: As a result of the fact that trade is essential for a nation's economic growth, many economists…
Q: (a) Q1: Examine the data in the Table below and determine the lifetime costs of this hybrid vehicle.…
A: To determine the lifetime costs of this hybrid vehicle, we need to consider both the purchase cost…
Q: The firm represented in this diagram,
A: A firm produces at the intersection of the MR and MC curves. The MR curve faced by monopoly and…
Q: The total fresh vegetables consumed per person per year where can be modeled by V(t)=0.5(t-4)²-3…
A: Here, It has been given a model. V(t) = 0.5(t-4)2 - 3 Whereas, V(t) = Total Fresh vegetables…
Q: SE ST X₂ 7 e estimated regression equation for these data is = 7.6 +0.9a. mpute SSE, SST, and SSR…
A: SST = ∑ i=1n(y - y¯)2SSE = ∑ i=1n(y* - y¯)2SSR = SST - SSE Note: As you have posted multiple…
Q: What are the four basic factors of production? Provide at least one example of each factor of…
A: Production is the process of creating goods and services that satisfy human wants and needs using…
Q: Q1. Consider a capital budgeting example with 6 projects from which to select. Let x₁ = 1 if project…
A: “Since you have posted multiple questions, we will provide the solution only to the first three…
Q: Identify what type of goods each of the following items are: A. Private Good B. Public Good 2 1.…
A: Let's first understand what does public and private good means:-
Q: 8. A young man has decided to go into a business at age 40. He wishes to accumulate P200,000 at that…
A: Given: The future value amount is = P200,000 The deposit increases by = 10% each year The interest…
Q: A man expects to receive P30,075 9 years from now. How much should he invests for three consecutive…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Recall the price matching game we discussed in class video. The main conclusion we can draw from…
A: In a price matching game, multiple firms compete by offering to match the prices of their…
Q: In terms of game theory, explain "tit-for-tat" and provide an example. Why does it work relatively…
A: In game theory, tit-for-tat is a technique that includes at first cooperating with an opponent and…
Q: ems 1 Using the data in GPA2 on 4,137 college students, the following equation was estimated by OLS:…
A: Given the regression equation as: colgpa = 1.391 - 0.135hsperc + 0.00148 sat
Q: Critically analyse how happiness is related to economic development
A: The process through which a country's economy expands and strengthens over time with the aim of…
Q: The following table shows income distribution data for 2015 and 2020 from the World Bank in Colombia…
A: Poverty gap can be defined as the ratio in which the average income of the poor falls below the…
Q: 11. Problems and Applications Q5 Consider the relationship between monopoly pricing and price…
A: A monopolist always produces in the elastic region of the demand curve. It is because in the…
Q: A small company manufactures and sells fishing poles. The cost of manufacturing fishing poles can be…
A: The given problem needs us to find out the output in case of maximum profits and minimum profits.…
Q: 42 Which statement best describes the Federal Reserve System? A It was established in 1913 and…
A: A financial institution that manages and regulates a country’s monetary policy, issues currency,…
Q: Refer to the above diagram for the milk market. There would be a surplus of milk whenever the price…
A: Surplus refers to a market scenario in which the supply of a product or service is more than the…
Q: hat produce information products have A. relatively low fixed cost. B. diseconomies of…
A: Information products are goods or services that primarily deliver knowledge, data, or information to…
Q: Let's take another look at the minimum wage. Is the minimum wage a price ceiling or price floor?…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The small country of Nederland counts its unemployed using the same methods as the United States.…
A: Given Total population of Nederland =350 Number of people who are under age =70 Employed people =190…
Q: A special-purpose 30-horsepower electric motor has an efficiency of 91%. Its purchase and…
A: There are two 30-horsepower motors for which efficiency and installation price is given. On the…
Q: Identify which restrictive practices are described in the following scenarios: A. Tying B. Exclusive…
A: The practices or policies of firms that restrict or limit competition in a particular market or…
Q: Ben gets utility from apples and bananas such that U(A,B)=A+2B. If the price of bananas is $2, then…
A: Demand Schedule: Demand schedule for a good is a combination of different price and optimal quantity…
Q: If the nominal wage rises by 6 percent and the price level rises by 7 percent, the real wage will…
A: Inflation rate is the rate at which the price is growing over the period of time. Inflation rate is…
Q: Public goods have the following characteristics Orivaled Oexcludable Onon-excludable Olow social…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Ve estimate a simple regression explaining monthly salary (salary) in terms of IQ score Q), using…
A: A regression equation is a mathematical formula that describes the relationship between a dependent…
Step by step
Solved in 3 steps with 1 images
- How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this City. What is the optimal level of sewage for this city? How can you tell?Is zero pollution possible under a marketable permits system? Why or why not?
- What is a pollution charge and what incentive does it provide for a firm to take external costs into account?cap-and-trade and windfall profitsA city called Seoul is suffering from high concentrations of mercury in the air, caused by burningcoal in power plants. There are two of these plants close to the city. The city’s mayor wants touse cap-and-trade to reduce emissions to a reportedly “safe” level of 60 tons. The two firms havethe following marginal benefits of emissions: MB1 = 100 – 2e1, MB2 = 25 – 0.5e2.a. How much mercury will each firm emit? What allowance price will prevail in themarket?Firm 2 hires a smart lobbyist who convinces the government that its profits are relatively low andthat it therefore deserves a generous allowance allocation. The government agrees and allocatesa1 = 20 allowances to firm 1 (for free) and a2 = 40 allowances to firm 2 (for free).b. What are the firms’ profits? Do any of the firms earn windfall profits? [Hint: compareprofits with and without regulation.] Windfall profits have been sharply criticized by consumer advocacy groups and politicians.c. What can…Use this prompt to answer the following questions about tradeable permits. Two firms each currently dump 20 tons of pollution a piece into a local river. The government wants to reduce the amount of pollution in the river so they issue 5 permits to each firm. The cost for firm A to reduce their pollution by 1 ton is $1000 and the cost for firm B to reduce their pollution by 1 ton is $800. When answering the questions below simply enter the number for your answer do not write a full sentence. Question 1 If trade is NOT allowed what will be the cost of reducing pollution will be for firm A, for firm B, and in total. 3 pts
- EOC 11.04 Two businesses, X and Y, each dump 20 tonnes of pollution into a creek. In an effort to reduce pollution, the government will now require businesses to have a pollution permit to dump pollutants in the creek. Each business receives 10 pollution permits and they can use it to pollute or sell it to the other business (but lose the ability to pollute). To reduce pollution it costs business X $100 per tonne of pollutant eliminated and it costs business Y $50 per tonne of pollutant eliminated. Once the two businesses have traded these permits with each other, what is the likely outcome? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a business X emits 10 tonnes of pollutants and business Y emits 10 tonnes of pollutants. b business X no longer pollutes, and business Y will not lower the amount it pollutes. business X raises its pollution, and business Y will lower how much it pollutes. business Y no longer pollutes, and…27. Esther and Karin each own a polluting plant. Esther's plant has a marginal treatment cost = 5T ($5 for the 1st ton, 5(2)=$10 for the 2nd ton ...) and Karen's plant = 8T ($8 for the 1st ton, 8(2)=$16 for the 2nd ton .). Suppose that the government plans to levy pollution emission fees to reduce the total pollution by 20 tons. How much pollution emission fees ($) will need to be collected to meet the government's target? In the range of a. 50 to 59 b. 60 to 69 C. 70 to 79 d. 80 to 89Consider a firm that emits pollution into the air. Suppose that the marginal damage costs associated with the emissions are given by MDC -15+ 4 c, where e is the quantity of the emissions. The firm's marginal costs of abatement are given by (a) (b) 390 (c) MAC 1200 - 20 c. Determine the quantity of emissions that the firm would discharge in the absence of government policy. Determine the socially efficient level of emissions. Calculate the total costs to society for both a and b and draw a diagram illustrating these costs.
- Consider the following graph that shows the marginal abatement cost (MAC) curve for a coal power plan for reducing local air pollution and the marginal damage (MD) curve for those living around the coal power plant. MD (E) MAC (E b. Emissions E-0 E EL E-Max AMax Or Abatement E A-0 What are the total abatement costs at E' (enter your answer with the letters and "+" signs as "a+b+c+d+e+f", without the quotation marks. What are the total abatement costs at E-0 (enter your answer with the letters and "+" signs as as "a+b+c+d+c+f", without the quotation marks. If the property rights were with the coal power plant how much Emissions would we see? (enter one of the following, "E-0", "E", "E1", "E-Max") If the property rights were with the people how much Emissions would we see? (enter one of the following. "E-0", "E", "E1 "E-Max") What is the socially optimal level of emissions (choose from one of the following and enter as written without the quotation marks, "E-0". "E"E1 "E-Max").The table below shows the marginal cost for three firms to clean up units of pollution. Marginal Cost ($) to clean... 2 tons of pollution 315.00 880.00 1525.00 Cost for US Steel = $ Cost for Ford = $ Suppose the government enacts a pollution charge of $1055.00 that firms must pay for every ton of pollution they do not clean in the first 3 tons. How much will each firm pay to clean their pollution? Cost for Apple = $ Tax Revenue = Firm US Steel Ford Apple Societal cost to clean 1 ton of pollution 115.00 230.00 1225.00 → ▶ - ▲ 3 tons of pollution 740.00 1225.00 1960.00 SITime remaining: 00:09:21 Economics QA and QS are the pollution levels for Arrow and Solow Industries, respectively. Profits (benefits) associatedwith polluting activity, πi(i = A, S) are πA=10QA−0.5QA2 and πS=20QS−QS2. The marginal benefits (profits) for each firm are MBA=10−QA and MBS=20−2QS. 2.9 Suppose Arrow is located in a remote rural area, with very low pollution levels (marginal damage = 6), while Solow is located in an urban area, with other pollution sources and many more people exposed (marginal damage = 12). What is the efficient pollution allocation in this case?