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
Vadim26 [7]
3 years ago
7

Suppose the United States has two​ utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of s

ulfur dioxide pollution per year.​ However, the marginal cost of reducing a ton of pollution for Consolidated Electric is ​$250 per ton and the marginal cost of reducing a ton of pollution for Commonwealth Utilities is ​$275 per ton. The​ government's goal is to cut sulfur dioxide pollution in half​ (by 20 million tons per​ year). If the government issues 10 million tradable pollution permits to each​ utility, what will be the cost of eliminating half of the pollution to​ society? Using a cap-and-tradeLOADING... system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of ​$nothing million per year.

Business
1 answer:
jok3333 [9.3K]3 years ago
7 0

Answer:

The incomplete part of the question is "Using a cap-and-trade system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of $1 million per year. If the permits are not tradable, what will be the cost of eliminating half of the pollution? If permits cannot be traded, then the cost of the pollution reduction will be $1 million per year." The full question is attched as picture as well

1) Tradable permit system

Then lower MAC firm will abate the all pollution units

Then as MAC1 = $250, MAC2 = $275

Firm 1 = Consolidated electric

Firm 2 = Commonwealth utility

Then 1 will sell all permits to 2, at a price between $250 & $275.

So total cost of abatement of 20 units = MAC1 * 20

= $250 * 20  Unit

= $5,000

2) Non-tradable permits

Total cost = MC1*10 + MC2*10

= $2,500 + $2,750

= $5,250

You might be interested in
The opportunity cost of a choice is the _____ of the opportunities lost.a. Valueb. Interest
vlada-n [284]

Answer:

value

Explanation:

Opportunity cost or implicit is the value of the option forgone when one alternative is chosen over other alternatives.

For example, if I leave by job where i earn $100,000 per year to study economics in college. My opportunity cost is $100,000. This is the amount i would have been earning if i didn't go to college

5 0
3 years ago
A bond with 15 detachable warrants has just been offered for sale at $1,000.00 . The bond matures in 25 years and pays a semi-an
ad-work [718]

Answer:

$15.64

Explanation:

first we must determine the market value of the bond without the warrants:

PV of face value = $1,000 / (1 + 3.5%)⁵⁰ = $179.05

PV of coupon payments = $25 x 23.45562 (PV annuity factor, 3.5%, 50 periods) = $586.39

market value = $765.44

the market value of the 15 warrants = $1,000 - $765.44 = $234.56

market value per warrant = $234.56 / 15 = $15.64

6 0
3 years ago
on a visit to Russia you re offered a dessert that combines sweetened cheese with candied fruit and almonds you' re being served
valkas [14]
You're being served a Pashka
5 0
3 years ago
Oak Inc. has the following information regarding its assets: Book Value Estimated Cash Flows Fair Value Equipment $35,000 $30,00
ExtremeBDS [4]

Answer:

d. $7,000.

Explanation:

The computation of the loss recorded due to asset impairment is shown below:

= Book value - fair value

= $35,000 - $28,000

= $7,000

If we consider the building and the patent we see that the estimated cash flows are  more than the book value, so no loss on impairment should be taken place

Therefore, only $7,000 should be recorded as a loss on impairment of the asset

8 0
3 years ago
When identical units of an item are purchased at different costs,
Masja [62]
When identical units of an item are purchased at different costs: <span>an inventory cost flow method must be used under both a perpetual and a periodic inventory system.

A perpetual inventory system will update your inventory on hand after each sale or purchase of inventory is made.  A periodic inventory system is updated periodically, meaning, a company will give a time period they would like their sales and purchases to update in and the system will perform that. Both systems are great for a business but it's their option of how they are generated. 
</span>
7 0
3 years ago
Other questions:
  • Suppose an initial investment of $80 will return $30/year for three years (assume the $30 is received each year at the end of th
    8·1 answer
  • Sea Company reports the following information regarding its production costs:
    12·1 answer
  • The average human lifespan is expected to increase by how many years by 2100? 15 years 30 years 10 years 25 years
    8·1 answer
  • Herbert spencer believed that societies evolve from lower to higher forms because as generations pass, the most capable and inte
    13·2 answers
  • How would a business person be most likely to use a seed capital
    12·1 answer
  • 14 . Private solutions to correct for externalities
    14·1 answer
  • Debbi Fields' success as an entrepreneur can be attributed to her prior business training and
    5·1 answer
  • Shauna wants to buy a house and plans to rent the apartment located in the basement for extra income. The house has a purchase p
    8·1 answer
  • A bed mart company is in the business of manufacturing beds and
    14·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!