ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 8, Problem 3.5P
To determine
Impact of technological change on
Introduction: Technological unemployment is the loss of jobs caused by technological change. Such change typically includes the introduction of advanced machines which saves labor hours. The change in technology can cause short-term job losses.
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"Whether the regulator sells or gives away tradeable emission
permits free of charge, the quantities of emissions produced by
firms are the same."
Assume that there are n identical profit-maximising firms where
profit for each firm is given by π(e) with л'(e) > 0; π"(e) <
0 and e denotes emissions. Individual emissions summed over
all firms gives E which generates environmental damages
D(E). Show that the regulator achieves the optimal level of total
pollution through a tradeable emission permit scheme, where
the permits are distributed according to the following cases:
Case (i) the firm purchases all permits;
Case (ii) the firm receives all permits free; and
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Case (iii) the firm purchases a portion of its permits and receives
the remainder free of charge.
compare and/or contrast the two plays we've been reading, Antigone and A Doll's House.
Chapter 8 Solutions
ECON MACRO
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