HomeworkLib
Question

Suppose two firms owned by xxx Corporation and zzz Industries are currently emitting 8,000 tons of...

  1. Suppose two firms owned by xxx Corporation and zzz Industries are currently emitting 8,000 tons of pollution each. Abatement costs for xxx  are MCT = 0.03QT and abatement costs for zzz are MCK = 0.02QK.

a.) Consider a pollution standard requiring each firm to reduce pollution by 5,000 tons. Calculate pollution reduction costs for each rm. (5 pts)

b.) What per unit tax would accomplish the same pollution reduction as the pollution standard in part (a)? Calculate pollution reduction costs for each

firm. (5 pts)

c.) Calculate the tax paid by each firm. (4 pts)

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

MACT MAC cA 0,02 ак TACH 5000 Q「 5000 nai aloate mamk cos of each m The mann ZZZ : MACK: 0.02 ( 5000): IO each biw 2 MACT- MA

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose two firms owned by xxx Corporation and zzz Industries are currently emitting 8,000 tons of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • For questions (2) and (3) suppose the government imposes an emission standard on the firms requiring...

    For questions (2) and (3) suppose the government imposes an emission standard on the firms requiring Firm 1 to reduce emissions by 30 tons and Firm 2 to reduce emissions by 20 tons. Question 2 10 pts Does the emission standard bring about a cost-effective allocation of pollution control responsibility? Yes NO Question 3 10 pts Calculate the total cost of pollution control for Firm 1 and for Firm 2. TCC1 - $ TCC2 = $ rvices Consider an industry...

  • Question 3 Assume that there are two firms, each emitting 40 units of pollutants into the...

    Question 3 Assume that there are two firms, each emitting 40 units of pollutants into the environment, for a total of 80 units in their region. The government sets an aggregate abatement standard (AST) of 30 units (total in the region). The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 15 + 1.5(A1)2, MAC1 = 3A1. Polluter 2: TAC2 = 16 + 0.55(A2)2, MAC2 = 1.1A2, a) What information does the...

  • Two firms can reduce emissions of a pollutant at the following marginal costs: MC1 = $24q1...

    Two firms can reduce emissions of a pollutant at the following marginal costs: MC1 = $24q1 MC2 = $12q2 where q1 and q2 are, respectively, tons of emissions reduced by the first and second firms. Total pollution-control cost functions for the two firms are: TC1 = $12 + $12(q1)2 TC2 = $10 + $6(q2)2 Assume that with no control at all, each firm would be emitting 10 tons of emissions (for aggregate emissions of 20 tons), and assume that there...

  • Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of...

    Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are as shown in the following table: Process (smoke) A (4 tons/day) B (3 tons/day) C (2 tons/day) D (1 ton/day) E (0 tons/day) Cost to Sludge Oil ($/day) 50 70 120 200 500 Cost to...

  • Two firms, ABC Textile, Inc. and XYZ Coal Mining, Inc., each currently dump 12 tons of chemicals into the local river. T...

    Two firms, ABC Textile, Inc. and XYZ Coal Mining, Inc., each currently dump 12 tons of chemicals into the local river. The local government has decided that 24 tons of pollution is too much. They want to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm five pollution permits, which it can either use or sell to the other firm. ABC Textile has...

  • Two firms in a regional shipping industry, Albatross, Inc. and Barracuda LTD, both emit carbon in...

    Two firms in a regional shipping industry, Albatross, Inc. and Barracuda LTD, both emit carbon in their transportation activities. Albatross emits 40 tons annually and can abate carbon emission at $100 per ton. Barracuda also emits 40 tons annually and can abate at $200/ton. The regional EPA wants to reduce carbon emissions between these two firms to 60 tons total annually, so it issues 30 permits to each firm.   Assume for now that the firms cannot trade, exchange or otherwise...

  • I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...

    I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this paper and some conclusions and contributes of this paper. I need this for my Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS PLEASE !!!) Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT