The cost of reducing lead contamination of water for BigManufacture Inc. is shown in the table below. BigManufacture Inc currently releases lead in to the local waterways at a concentration of 5 parts per billion. The government regulations sets a limit to the lead pollution at 2 parts per billion accompanied by a $30,000 fine per year for each part per billion beyond the 2 part limit. What is BigManufacture Inc likely to do? Reduction of Lead Cost By 1 part per billion $20,000/year By 2 parts per billion $45,000/year By 3 parts per billion $80,000/year Group of answer choices Reduce lead pollution by 1 part per billion. Reduce lead pollution by 2 parts per billion. Reduce lead pollution by 0 part per billion. Reduce lead pollution by 3 parts per billion.

Suppose that Penn Products and Teller Industries are both emitting 30 metric tons of perfluorocarbons (PFCs) into the atmosphere. Regulators wish to reduce emissions to 40 metric tons overall, and plan to achieve this with a system of tradable permits. Penn’s marginal abatement costs are given by MACP = 5eP, where eP is the number of metric tons of emissions that Penn is cutting. Thus, the cost of cleaning up the first metric ton is $5, the second ton costs $10 to clean up, and so on. Teller’s marginal abatement costs are given by MACT = 7.5eT, where eT is the number of metric tons of emissions that Teller cuts. a. The lowest-cost way to reduce emissions is found when both firms’ marginal abatement costs are equalized. Equate Penn’s and Teller’s marginal abatement costs, and solve for eP in terms of eT. For each metric ton that Teller cuts, how many tons should Penn cut? b. Because 20 metric tons are to be cut, we know that eP + eT = 20. Use your…

Gozilla Inc. can generate 100 (CO2) emissions without any regulation. The marginal control cost for Gozilla Inc., associated with emission reduction, is known MC=20+0.5Q where Q is reduced units. Suppose that the regulator impose an emission standard on Gozilla: According to the emission standard, the factory is allowed to emit 40 units. The level of reduction in the emission standard could be accomplished through an emission charge (quantity tax or penalty fee on emission). An emission charge of per emission unit would generate the target amount of reduction. Total (tax) revenue the regulator will collect as emission charges would be Hint: Type integers. Do not use thousands separators.

A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, what level of emissions does the firm choose under the tax?   A polluting firm’s marginal abatement cost is MACi = 50 – 0.25ei . If a regulator imposes a per-unit emissions tax of t = 10, how many units did the firm abate relative to the unregulated environment?

The Upstream Nukem Co. uses a technology that produces pollutants as a by-product. The company dumps these pollutants into Radiant River. The only way that Nukem can reduce pollution is by cutting output. Nukem's profits, expressed as a function of the amount x (in tons) of pollutants per day, is IIN (x) = 80x - 5x² The pollution adversely affects the performance of Downstream Glowing Fisheries. Glowing's profit, as a function of the quantity of pollution, is given by IIG(x) = K - 5x² where K is a constant relating to all factors other than pollution. (i) If there are no restraints on pollution and no negotiations between the two companies, how much pollution will Nukem produce per day? x =. 10 8 ОС 4 2 (ii) What is the socially optimal quantity of pollution? x* = 1 5 со ст 3 O 2

Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is  MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is  MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Please provide the correct answer. Thank you!

Two firms are covered by a tradable permit system. Firm one has a marginal abatement cost given by MAC1 = 8 - E1 and firm two has a marginal abatement cost given by MAC2 = 8 - E2, where MAC is measured in dollars/ton and E in tons/hour. If each firm is given permits for 3 tons/hour of pollution and they are allowed to trade, what will the permit price (in $/ton) be?

Two coal-burning electric power plants are emitting mercury which impairs cognitive development in children. Plant A's marginal abatement cost is MCA= 1.2q and plant B's marginal abatement cost is MCB = 0.3q. Each firm initially emits 50 units and the EPA would like to reduce total emissions to 40.   If the EPA follows a command-and-control policy and tells each firm to abate by the same amount, what will be the total costs?     If firms could trade permits, what would happen to total costs? Why?

Branding Iron Products, a specialty steel fabricator, operates a plant in the town of West Star, Texas. The town has grown rapidly because of recent discoveries of oil and gas in the area. Many of the new residents have expressed concern at the amount of pollution (primarily particulate matter in the air and waste water in the town’s river) emitted by Branding Iron. Three proposals have been made to remedy the problem:a. Impose a tax on the amount of particulate matter and the amount of waste water emitted by the firm.b. Prohibit pollution by the firm.c. Offer tax incentives to the firm to clean up its production processes.Evaluate each of these alternatives from the perspectives of economic efficiency, equity, and the likely long-term impact on the firm.

The Upstream Nukem Co. uses a technology that produces pollutants as a by-product. The company dumps these pollutants into Radiant River. The only way that Nukem can reduce pollution is by cutting output. Nukem's profits, expressed as a function of the amount æ (in tons) of pollutants per day, is IIN(x) = 80x - 5x² The pollution adversely affects the performance of Downstream Glowing Fisheries. Glowing's profit, as a function of the quantity of pollution, is given by IIG(x) = K - 5x² where K is a constant relating to all factors other than pollution. (i) If there are no restraints on pollution and no negotiations between the two companies, how much pollution will Nukem produce per day? x =. O 10 8 06 O 4 02 (ii) What is the socially optimal quantity of pollution? * 02 O 4 O 3 O 1 05 ||