The amount of pollution discharged if there is no restriction imposed. Concept Introduction: The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Question

Consider the simple discrete job search model that we studied in class. Only the unemployed can receive one offer per period from F(w) that is a uniform distribution on [0,2]. There is a constant probability of being laid off at the end of each period while employed. Assume that she can get a new offer right away when laid off. We want to understand the reservation wage, WR, in this model. Assume that u(c) = c. The parameters are a discount factor ẞ and an unemployment benefit b.R and show that T is contraction on [0, ∞). Explicitly state any additional assumptions that you may need.(Grading guide line: 5pt for the exact form of T, 10pt for showing contraction, and 5pt for stating correct assumptions.)< (b) Discuss why (a) is useful to understand the reservation wage wд in this economy.< (c) We write WR = WR (b,ẞ,λ) to reveal its dependence on (b,ẞ,λ). Show that 0 ≤ aWR дь OWR дл ≤1 and ≥0. What about ? awR ав State any additional assumptions that you may need.< (d) Briefly explain the…

Answer 1

Question

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

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Consider the simple discrete job search model that we studied in class. Only the unemployed can receive one offer per period from F(w) that is a uniform distribution on [0,2]. There is a constant probability of being laid off at the end of each period while employed. Assume that she can get a new offer right away when laid off. We want to understand the reservation wage, WR, in this model. Assume that u(c) = c. The parameters are a discount factor ẞ and an unemployment benefit b.R and show that T is contraction on [0, ∞). Explicitly state any additional assumptions that you may need.(Grading guide line: 5pt for the exact form of T, 10pt for showing contraction, and 5pt for stating correct assumptions.)< (b) Discuss why (a) is useful to understand the reservation wage wд in this economy.< (c) We write WR = WR (b,ẞ,λ) to reveal its dependence on (b,ẞ,λ). Show that 0 ≤ aWR дь OWR дл ≤1 and ≥0. What about ? awR ав State any additional assumptions that you may need.< (d) Briefly explain the…

3. Consider the market for paper. The process of producing paper creates pollution. Assume that the marginal damage function for pollution is given by: MDF = 3E where damages are measured in dollars and E is the level of emissions. Assume further that the function describing the marginal abatement cost of emissions is given by MAC 120-E where benefits are measured in dollars and E is the level of emissions. a. Graph the marginal damage function (MDF) and the marginal abatement cost function (MAC). b. What is the unregulated level of emissions Eu? What is the social welfare of this emissions level? c. Assume an existing emission quota limits emissions to E = 60. Show on the graph why this policy is inefficient. What is the deadweight loss caused by this policy?

show written calculation for B

Answer 2

Question

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

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Answer 3

Question

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

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Answer 4

Question

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

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Answer 5

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 6

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 7

Chapter 17, Problem 2.7P

(a)

To determine

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 8

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 9

(b)

To determine

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 10

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 11

(c)

To determine

Calculate the market equilibrium if the products are sold at the market clearance price.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 12

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 13

(d)

To determine

If the quantity of discharge is reduced, calculate the market equilibrium.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Answer 14

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Ch. 17 - Prob. 1.1P Ch. 17 - Prob. 1.2P Ch. 17 - (Negative Externalities) Suppose you wish to...Ch. 17 - Prob. 2.4P Ch. 17 - Prob. 2.5P Ch. 17 - (External Costs with Variable Technology) Think of...Ch. 17 - Prob. 2.7P Ch. 17 - Prob. 3.8P Ch. 17 - Prob. 4.9P

The amount of pollution discharged if there is no restriction imposed. Concept Introduction: The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Solution Summary: The author explains the point at which a product's supply matches or equals the demand is known as economic equilibrium.

The amount of pollution discharged if there is no restriction imposed.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Chapter 17 Solutions

The amount of pollution discharged if there is no restriction imposed. Concept Introduction: The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Solution Summary: The author explains the point at which a product's supply matches or equals the demand is known as economic equilibrium.

The amount of pollution discharged if there is no restriction imposed. Concept Introduction: The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

The quantity of demand and supply for the restricted discharge. Concept Introduction: The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.

Chapter 17 Solutions

The quantity of demand and supply for the restricted discharge.

Concept Introduction:

The point at which a product’s supply matches or equals the demand is known as economic equilibrium. When the supply of products intersects with its demand hypothetically, the equilibrium on price exits.