The MD and MAC curves below represent damage and abatement cost functions fora firm liable for damages caused by its emissions. Suppose the firm cleans up itsemissions so as to minimize the sum of its abatement cost and compensationpayment. What would be its total cost? Copyrighted material. Not to be shared.$15MAC1025MDAEmissions(tonnes/month)

The total cost for the firm would be the sum of its abatement cost and compensation…

Answered: The MD and MAC curves below represent…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Discuss in detail the micro and macro environmental factors of ice - cream industry in India.
Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 27-3E. The government introduces a per-unit tax on emissions equal to $6. For a profit-maximizing firm, total compliance costs (total abatement costs plus tax payment) are $ Answer:
$ MAC 69 0 K A. The total benefit of that decision is represented by area(s) B. The total cost of that decision is represented by area(s) M Suppose that emissions were to decrease from the unregulated level to the optimal level. C. The net benefit of that decision is represented by area(s) MD ◆ e ◆
Correct answer with explan in minimum 300 words
What are the estimated abatement cost curves? What would the pollution standard be if they achieved the social optimum? What about an optimal pollution tax?
Suppose a power generating plant emits particulates that damage crops and affect human health. The relationship between emissions and environmental damage is represented by the marginal damage function, MD=9e where e represents tons of emissions per month. The cost to the firm (and society) of eliminating emissions is represented the marginal abatement cost function, MAC=108.5 - 6.5e Both MD and MAC are dollar costs per month. If the power generating firm were allowed to ignore the social cost of its emissions, what would be the firm’s monthly emission level? Calculate the socially efficient level of pollution. If the emissions calculated in part B is a level found to shorten some people’s lives, could it still be considered socially efficient? Suppose the EPA set an emission standard at the socially efficient level calculated in part B. Calculate the cost to the firm of achieving this standard. Suppose that instead of a standard, the EPA charged an emissions tax. The tax is set at…
Define cost-benefit analysis (Select measurement and measure old cost/benefitelements upon evaluating public expenditures)
Compare and contrast the following concepts and indicate their implications: in the context of city formation, external economies of scale in production vs economies of scale in production chegg
A number of reasons have been put forward for the perceived failure of small firms to become environmentally aware: Cost Lack of expertise Ignorance of legislation Scale advantages. a) explain each reason that led to failure of small firms to become environmentally aware. b) What may these factors have led to?What is necessary to do in order to create greater interest within the small-firm sector and improve its environmental practices?
Consider an industry with two firms that emit a uniformly mixed air pollutant (e.g., carbon dioxide). The marginal abatement cost functions for Firm 1 and Firm 2 are: MAC1 = 100 - e1 MAC2 = 100 - 4e2 Aggregate emissions for the industry are denoted as E = e1 + e2. [1] In an unregulated environment how many units of emissions does each firm emit? Firm 1’s unregulated level of emissions ____________ Firm 2’s unregulated level of emissions ____________ Total unregulated level of emissions ______________
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If MBmi(s)=180-15s and MCown(s)=5s, how much pollution is emitted with no controls on pollution? What is the optimal amount of pollution (s*)? How much would the firm abate (A*)? If the government used a pollution tax to achieve s*, where would it set the tax? How much would this tax raise in revenues? What would be the total abatement cost?

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