(2 marks) Q12 A sandwich shop owner makes 1 sandwich with brown bread for every 4 sandwiches he makes with white bread. Today he
1 answer:
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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
