1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Keith_Richards [23]
3 years ago
10

Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured in tons): MB=150-5 E e. No

w assume that instead the government allocates each firm permits to pollute equal to the total current pollution minus 12 tons, but allows the firms to trade. Which firm will purchase permits and which firm will sell permits? Hint: Notice that total pollution reduction of firm 1 plus firm 2 will be 24 tons. f. How much pollution reduction will each firm undertake after they have traded permits? What will the total cost of pollution reduction be across both firms? g. What price will permits sell for? What would the total cost to each firm of complying with the cap-and-trade policy be? h. Explain in words why the total cost of reducing pollution is lower under cap-and-trade than with firm-specific pollution limits. 3. Assume that a firm has the following marginal benefit of pollution (denoted E for emissions, measured in tons): MB=150-5E a. How much would this firm pollute if pollution is unregulated? b. The government would like to reduce pollution from this amount by 12 tons and so implements a quantity constraint at the quantity in part (a) minus 12. What is the cost to this firm of reducing pollution by 12 tons? C. What tax would encourage this polluter to reduce pollution by the same 12 tons as the quantity constraint? What would the cost of this tax be to the firm? d. Now assume that there is a second firm with the following marginal benefit of pollution: M B =90-3 E2. How much pollution would this firm emit if pollution is unregulated and what would it's cost be to reduce pollution by 12 tons from that level? e. Now assume that instead the government allocates each firm permits to pollute equal to the total current pollution minus 12 tons, but allows the firms to trade. Which firm will purchase permits and which firm will sell permits? Hint: Notice that total pollution reduction of firm 1 plus firm 2 will be 24 tons. f. How much pollution reduction will each firm undertake after they have traded permits? What will the total cost of pollution reduction be across both firms? 8. What price will permits sell for? What would the total cost to each firm of complying with the cap-and-trade policy be? h. Explain in words why the total cost of reducing pollution is lower under cap-and-trade than with firm-specific pollution limits.
Chemistry
1 answer:
jeka57 [31]3 years ago
5 0

Answer:

Explanation:

E)cost of pollution is reduction in benefit of the firms.

MB=150-5E,. MB=90-3E

E=30-MB/5. E=30-MB/3

Joint MB,

E=60-8MB/15

MB=112.5-1.875E

Total pollution reduction=24

Total pollution=60-24=36

MB=112.5-1.875*36=112.5-67.5=45

Firm 1

MB=150-5E.

45=150-5E.

E=-105/-5=21

Reduction=30-21=9

Firm 2,

MB=90-3E

45=90-3E

E=-45/-3=15

Reduction =30-15=15

So firm 2 is reducing 15 units of pollution and firm 1 reducing 9 units of pollution.

As each firm have to reduce 12 units of pollution but firm 2 reducing 3 units more while firm 1 reducing 3 less units.

So, firm 2 is selling 3 units of pollution emission permit to firm 1.

F)firm 1 reduce 9 units and firm 2 reduce 12 units of pollution after trade.

Total cost of pollution reduction will total Benefit reduction by pollution reduction.

MB=112.5 -1.875E

TB=112.5E-0.9375E^2

TB at E=60

TB=112.5*60-0.9375*60*60=6750-3375=3375

TB at E=36

TB=112.5*36-0.9375*36*36=4050-1215=2836

Total cost of pollution reduction=3375-2836=540

G)price of permit= cost of extra pollution reduction by firm 2 or total cost from 9 to 12 by firm 2

MB=90-3E

TB=90E- 1.5E^2

TB at E=18

TB=90*18 -1.5*18*18=1620-486=1134

TB at E=15

TB=90*15 -1.5*15*15=1350-337.5=1012.5

Permit price=1134-1012.5=121.5

Total cost to firm 2 =1134

Net total cost to firm 2=1134-121.5=1012.5

Total cost to firm 1=150E-2.5E^2=150*9-2.5*9*9=1350-202.5=1147.5

Net total cost=1147.5+121.5=1269

H) the total cost is lower in cap & trade policy is because the firm who has higher cost of pollution reduction is paying the other firm who has lower cost of pollution reduction to reduce more pollution ,so that his part of pollution reduction can be completed.

And the amount he is paying is equal to the amount that is cost of other firm of reducing additional pollution units.

So the cost the firm is lower as he is paying lower amount than if he reduce pollution by itself.

You might be interested in
Choose two of the following scientists: Anton Lavoisier, John Dalton, JJ Thomson, Robert Millikan, Ernest Rutherford, James Chad
elixir [45]

Answer:

John Dalton:

John Dalton was the scientist who introduced atomic theory in the field of chemistry. Dalton worked on different gases and formulated this theory. The main points of Dalton's theory are:

  • Every element present is made up of atoms.
  • Atoms of an elements are have the same same properties whereas these properties are different for each element.
  • According to his theory, an atom could not be broken down.
  • Different atoms combine or get separated from each other during a chemical reaction.

Ernest Rutherford:

Ernest Rutherford is known as the father of nuclear physics due to his impressing research work on radioactivity of atoms. Rutherford was the first scientist to discover the nucleus of an atom and prove that the nucleus was charged. He also described that the electrons circle around the nucleus of an atom.

6 0
3 years ago
Which of the following statements about elements is not true?
guapka [62]

Answer:

Option A is not true

Explanation:

Could you please follow me and mark me as the brainliest answer

6 0
3 years ago
NEED HELP ASAP
katrin [286]
Removing seed casings from grains is SEPARATING. a soda bubble bubbling when it is opened is MIXING. a bright copper statue turning green is MIXING. remove salt from seawater is SEPARATING. water decomposing is SEPARATING.
7 0
3 years ago
Convert 135 Meters to kilometers
tamaranim1 [39]

Answer:

0.135 km

Explanation:

1 km = 1000 meters

7 0
2 years ago
Suppose there are two known compounds containing the generic elements X and Y. You have a 1.00-g sample of each compound. One sa
Lapatulllka [165]

I think the correct answers are X2Y and X3Y, X2Y5 and X3Y5, and X4Y2 and X3Y, for the following reason: 

If you look at the combining masses of X and Y in each of the two compounds, 

The first compound contains 0.25g of X combined with 0.75g of Y 
so the ratio (by mass) of X to Y = 1 : 3 

The second compound contains 0.33 g of X combined with 0.67 g of Y 
so the ratio (by mass) of X to Y = 1 : 2 

Now, you suppose to prepare each of these two compounds, starting with the same fixed mass of element Y ( I will choose 12g of Y for an easy calculation!) 

The first compound will then contain 4g of X and 12g of Y 
The second compound will then contain 6g of X and 12g of Y 

<span>The ratio which combined the masses of X and the fixed mass (12g) of Y
= 4 : 6 
<span>or 2 : 3 </span>

So, the ratio of MOLES of X which combined with the fixed amount of Y in the two compounds is also = 2 : 3 </span>

The two compounds given with the plausible formula must therefore contain the same ratio.

8 0
2 years ago
Other questions:
  • What problems might happen if an unnecessary hurricane warning was issues
    15·1 answer
  • A diatom is a(n) _______ because it has _______.
    8·1 answer
  • The vapour pressure of pure benzene at 20 °C is 75 Torr and that of pure methylbenzene is 25 Torr at the same tempera-ture. In a
    10·1 answer
  • The common laboratory solvent ethanol is often used to purify substances dissolved in it. The vapor pressure of ethanol , CH3CH2
    13·1 answer
  • Need help please now
    15·1 answer
  • For this PreLab assignment we will assume all of the acid is the monoprotic acid acetylsalicylic acid (C9H8O4). [Note: for your
    8·1 answer
  • How do I answer the question in bold? Thank you!
    15·1 answer
  • Gustave-Gaspard Coriolanus described this type of energy
    9·1 answer
  • Neeeeeed helpppppp will give brainiest
    12·1 answer
  • The element that corresponds to the electron configuration 1s22s22p63s23p64s13d5 is
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!