Consider two countries, A and B, whose respective industries produce goods A and B. Total world output of the good is given by Q
1 answer:
Answer: hello your question is poorly written attached below is the complete question
answer :
a) 31.5
b) 24.5
Step-by-step explanation:
Total world output of good given ( Q ) = qA + qB
world demand ( P ) = 100 - Q
cost function for country A = cA (qA) = 8qA
cost function of country B = cB(qB) = 3qB
total world emission = 0.5Q
emission per unit good = 0.5
<u>a) Determine total world emissions when both countries compete in a Cournot fashion</u>
Q = 63
therefore Total world emission = 0.5 ( Q )
= 0.5 ( 63 ) = 31.5
attached below is the detailed solution
<u>b) Determine the total world emissions after Country A enacts a carbon tax</u>
Q = 49
Therefore Total world emission after tax = 0.5 ( Q )
= 0.5 ( 49 ) = 24.5
attached below is the detailed solution
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Answer:
(Missing part of the question is attached)
Estimates are too large.
Step-by-step explanation:
Suppose the only information we know about the function is:
where the graph of its derivative is shown in the attachment
<h3>(a)</h3>If the function is differentiable at point
, the tangent line to the graph of
at 1 is given by the equation:
So we call the linear function:
We know the as it is given in the question, and
from the graph attached. Substitute in the equation of
.
At x=1, is positive but it is decreasing. However. if we draw the tangent lines, we see that the tangent lines are becoming less steeper, so the tangent lines lie above the curve
. Thus, The estimates are too large.
