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 = $ Cost for Apple = $ Firm US Steel Suppose the government enacts a pollution charge of $1055.00 that firms must pay for every ton of pollution they do not clea in the first 3 tons. How much will each firm pay to clean their pollution? Tax Revenue = $ 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

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 = $ Cost for Apple = $ Firm US Steel Suppose the government enacts a pollution charge of $1055.00 that firms must pay for every ton of pollution they do not clea in the first 3 tons. How much will each firm pay to clean their pollution? Tax Revenue = $ 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

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

Macmillan Learning The accompanying graph depicts the marginal social cost (MSC) and marginal social benefit (MSB) of pollution emissions. Move the point, P, to the point representing the optimal level of pollution. What is the optimal quantity of pollution? metric tons The optimal quantity of pollution is not zero because: 1,000 Dollars 900 800 700 600 500 400 300 200 100 0 27 2 P 3 4 5 6 Metric tons of pollution 7 8 9 MSC MSB 10
please help me with this question
6. Consider an industry with three firms. Firm 1's marginal cost of abatement (MCA)=10-E₁, where E is the tons of pollution emitted. Firm 2's MCA-30-2E₂. Firm 3's MCA-30-E3. Please draw a diagram to support your answers to the following questions. If there is no policy to reduce pollution, how much pollution will be emitted by each firm? What will be total pollution? Hint: if there is no policy to reduce pollution, the price to pollute is zero. b. If the government imposes a tax of $10/ton, how much pollution will be emitted by each firm? How much pollution will be emitted in total? C. What will be the total cost of abatement? a. d. If the government imposes a limit on pollution, where the limit is the total amount of pollution you found in part b, and each firm is allowed to pollute an equal amount (i.e., each firm will be allowed to emit one third of the total amount allowed), what will be the total cost of abatement? e. Which policy is more efficient, the tax or the limit on…
2
do fast. i will 5 upvote
8.1 Suppose we have an agricultural valley 100 km by 50 km, with a polluting electricity power plant. The power plant causes pollution problems in a narrow strip of land downwind of the plant, and within this valley. 10 km in length and 500 m in width, but no problems outside of that area. The total effect of the pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes in land prices and/or wages fully reflect the benefits of cleaning up the pollution? Why or why not?
Only typed answer
The table below shows current carbon emissions and the cost of reducing carbon emissions for three industrial firms. The government introduces a cap-and-trade policy to regulate carbon emissions. The total cap on emissions is 180 tonnes of carbon, and each firm receives an initial allocation of tradable permits for 60 tonnes of carbon emissions. Current carbon emissions Firm A B C (tonnes) 80 100 70 a. Firm A will buy 40 emission ✓ Firm C. Cost of reducing emissions by 1 ton ($) 150 200 50 Firm B will sell 20 emissior Firm C. Instructions: Round your answer to the nearest whole number. b. To break even, the selling firm must receive $ 150
What should the government set their corrective tax to if they want to eliminate 7 units of pollution?
There are three industrial firms in a town Firm Initial Pollution Level Cost of Reducing Pollution by 1 Unit A 30 units $20 40 units 20 units B с $30 $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. 1. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? 2. How much higher would the costs of pollution reduction be if the permits could not be traded?
firms matter for efficiency? Explain. 9. There are three industrial firms in Happy Valley. Initial Pollution Cost of Reducing Firm Level Pollution by 1 Unit A 30 units $20 В 40 units $30 C 20 units $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. a. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? b. How much higher would the costs of pollution reduction be if the permits could not be traded? Answers
Im confused on this question.