How do you get this answer? The table below depicts the marginal cleanup costs for Springfield's two polluters, ACME Corp.and Bluth Industries. Currently, each firm is polluting 100 units (for an industry total of 200units). However, regulators have decided that the total amount of pollution in Springfield needsto be cut in half.CleanupMarginalCleanup CostMarginalCleanup CostLevel (A or B)ACMEBluth10203040222215102012301645225065306090457012065Suppose, instead, that regulators adopt pollution taxes. What tax level would guaranteethe same outcome?Answer: A tax of 45.01 would achieve the same amount of cleanup.

let's go through the process step by step.Step 1: Calculate the Marginal Cost of Abatement We'll…

Answered: The table below depicts the marginal…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 33CTQ: Is zero pollution possible under a marketable permits system? Why or why not?

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3. The table below depicts the marginal cleanup costs for Springfield's two polluters, ACME Corp. and Bluth Industries. Currently, each firm is polluting 100 units (for an industry total of 200 units). However, regulators have decided that the total amount of pollution in Springfield needs to be cut in half. Marginal Marginal Cleanup. Level (A or B) Cleanup Cost Cleanup Cost ACME Bluth 10 15 10 20 20 12 30 30 16 40 45 22 50 65 30 60 90 45 70 120 65 a) Suppose regulators adopt a command-and-control pollution standard that forces each firm to reduce pollution by the same amount, going from 100 units down to 50 units. What is the total cost of cleanup under this regulation? b) Suppose, instead, that regulators adopt pollution taxes. What tax level would guarantee the same outcome? Under the tax, how much pollution would each firm clean up? What is the total cost of cleanup under this regulation? How much tax revenue would the tax generate? c) If regulators were to implement cap-and-trade,…
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…
Price Qd Qs before Considering Pollution Cost Qs after Considering Pollution Cost $600 50,000 40,000 30,000 $650 45,000 45,000 35,000 $700 40,000 50,000 40,000 $750 35,000 55,000 45,000 $800 30,000 60,000 50,000 $850 25,000 65,000 55,000 $900 20,000 70,000 60,000 Refer to the above table. The externality created by the production of refrigerators was $100. However, once both the private and additional external costs were taken into consideration, the market price increased by only $50. If the external costs were $100 why did the price only increase by $50 when all costs were taken into account? Explain.
Compared with a standard, both tradable discharge permits and emission taxes tend to be preferred by firms D' impose larger payment burdens on each and every polluter have been more commonly used in practice to address actual pollution problems provide greater incentives for firms to search for innovative ways to abate pollution
Why is Covid-19 considered a positive externality
Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6
Complete the second column of the following table by indicating who buys and sells permits in this case. Complete the fourth column of the table with the number of permits each firm ends up with after trading with the others. Next, subtract the number of permits from the initial pollution level to determine how many units of pollution reduction each firm has to complete, and enter these values into the fifth column of the table. Next, determine the total cost of reducing the pollution levels you determined in the previous column, and enter that into the final column of the table. Finally, add up the total pollution reduction costs for each firm and enter the total amount in the final cell of the total row in the following table. Firm A B C Total Buys or Sells Initial Pollution Level 30 45 60 If permits could not be traded, firm A would have to remove units of pollution at a total cost of $ The overall cost of reducing pollution in this case is $ " Permits after Trade Remaining…
Discuss the two approaches to environmental enforcement in industrial democracies
(BUS 201.) On page 211-212, in the Ethics section at the bottom of the page, there is a discussion about a case concerning the Power Rangers. Please read this excerpt and discuss your thoughts.
The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm 2. Dollars 60 50 40 30 20- 10 0 Firm 1 MC₁ 1 1 Q₁ Q₂ Q₂ Q₁ Q₂ Q Q₁ Abatement Dollars A) each firm would abate to Q3. 60 50 40 30 20 10 FIGURE 17-5 0 B) each firm would abate to the same level. MC₂ 06) Refer to Figure 17-5. Suppose Firm 1 and Firm 2 are each abating 0 units of pollution. If the government imposed an emissions tax of $40 per unit of emissions, E) the level of pollution would be optimal. Firm 2 1 1 1 Q₁ Q₂ Q₂ Q Qs Q Q₁ Abatement C) Firm 1 would abate beyond Q3 and Firm 2 would abate less than Q3. D) Firm 2 would abate beyond Q3 and Firm 1 would abate less than Q3.

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