Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 9, Problem 3E
To determine
To write:
Fill in the table below:
| Income | Consumption | Saving | MPC | MPS | APC | APS |
| $1000 | $400 | 0.60 | ||||
| $2000 | $900 | $1100 | ||||
| $3000 | $1400 | 0.50 | ||||
| $4000 | $2100 |
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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
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D(E). Show that the regulator achieves the optimal level of total
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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.
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