There are three industrial firms in the county. -Firm A's initial pollution level is 50 units. Its cost of reducing pollution by 1 unit is $30. -Firm B's initial pollution level is 40 units. Its cost of reducing pollution by 1 unit is $20. -Firm C's initial pollution level is 30 units. Its cost of reducing pollution by 1 unit is $40. The government wants to reduce pollution to 90 units so it gives each firm 30 tradable pollution permits. (i) Who sells permits? (ii) How many do they sell? (iii) Who buys permits? (iv) How many do they buy?
Q: s Firm A $150 for each ton of pollution that it eliminates before it reaches the river, and it costs…
A: Financial experts are generally worried about contrasting the peripheral advantages with the…
Q: 3. There are two firms that emit pollutant SO2. Assume the pollution abatement technology of the two…
A: MAC function of the two firms are as follows:- MACA=240-6EA. MACB=160-4 EB.
Q: There are three industrial firms in Happy Valley.The government wants to reduce pollution to 60…
A: a) Firm B would like to purchase 20 permits from another firm as it has the biggest share of…
Q: $20 15 10 1,200 1,500 1,800 2,400 Refer to the figure. The figure represents the market for Covid…
A: External benefits are received as a result of economic transactions by any individual or firm but…
Q: 3. One approach to the problem of pollution control in a market economy is to sell pollution…
A: Pollution is a negative externality that imposes external costs on third parties who are not…
Q: There are three industrial firms in Happy Valley. Initial Pollution Cost of Reducing Firm Level…
A: Given, A 30 units $20 B 40 units $30 C 20 units $10
Q: There are three industrial firms in Happy Valley.FirmInitial PollutionLevelCost of ReducingPollution…
A: Pollution refer to the act of contaminating the environment from harmful use of chemical which are…
Q: (Figure: The Socially Optimal Quantity of Pollution II) In the accompanying figure, without…
A: There used to be differences in the social and personal benefit of all the economic activities…
Q: 4 points Marginal Cost to Eliminate (Dollars) First Unit Second Unit Third Unit Fourth Unit Firm A…
A: The given table show the marginal external costs(MEC) for each of four firms (A,B,C and D) to…
Q: 16. Suppose there are two manufacturers A and B in the society, and each manufacturer will produce…
A: Answer -
Q: Explain specifictly how to overcome and solve the major problem of Mcdonal's company from polluting…
A: There are two crucial categories of business cycles which are inflation and recession. At the time…
Q: Imagine the government of California has proposed a new tax on vehicles based on the amount of…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: 17. Two firms, A and B, each currently dump 50 tonnes of chemicals into the local require a…
A: Hi! thank you for the question but as per the guidelines, we can answer only one question at one…
Q: Economists define the efficient amount of fund pollutants as the amount that minimizes the sum of…
A: Pollution exists when the environment is contaminated due to human activity causing harm to people…
Q: unit of pollution. For each firm, assume that the cost of reducing pollution to zero (that is,…
A: The government tried to reduce pollution that takes place due to various production and consumption…
Q: 2) The following table shows how the marginal benefit of a service varies for five consumer Quantity…
A: The highest amount that will be paid by a consumer by his/her willingness is the "marginal benefit"…
Q: The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution…
A: Firm Initial pollution level Cost of reducing pollution by 1 unit A 30 units $20 B 40 units $30…
Q: ete the following table with the action each firm will take at this permit price and the amount of…
A: 1) Cost of eliminating two term of pollution by every firm, Firm X 280+300 580 Firm Y 600+720…
Q: Now, imagine that two government employees proposed alternative plans for reducing pollution by 6…
A: Given: Number of firms=3 Pollution for each area=4 units
Q: Marginal Benefit (MB) to Firm MBBETA MBALPHA Tax = $100 25 50 75 100 Emissions (tons) Figure 16.5…
A: Here, two firms are operated in an industry named as Alpha and Beta, and their marginal benefit from…
Q: 2
A: The cost of an additional unit is computed by marginal cost, which is an economic term. In general,…
Q: Table 16.1 shows the situation facing two firms, both of which are polluting. Assume that each firm…
A: In the question above, it is given a table that shows the situation facing two firms, both of which…
Q: This summer, the temperature records on each other's feet seem to be beaten. In Sweden, the…
A: Market failure refers to that scenario in which the equilibrium point of a market do not includes…
Q: Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax…
A: Suppose Demand for pollution is P=30-Q, If a tax of $10 per unit is set, the optimal amount of…
Q: Table 4 The following table shows the marginal costs for each of four firms (A, B, C, and D) to…
A: The firm will produce up to the point when the marginal cost is lesser than $84 For Firm 1: 3 units…
Q: Firms in a polluting industry can be classified in two groups: newer firms with a cleaner technology…
A: The pigovian fee is an emission fee exactly equal to the aggregate marginal damage created by the…
Q: t are the costs of pollution according to the Lancet Commission on pollution and health? Why are…
A: Lancet commission has done research on different kinds of land, air and water pollution and…
Q: What should the government set their corrective tax to if they want to eliminate 7 units of…
A: Each firm will bear the cost of eliminating certain units of pollution if the corrective tax rate is…
Q: Initial Pollution Cost of Reducing Firm Level Pollution by 1 Unit 30 units $20 40 units $30 20 units…
A:
Q: Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes…
A: The measure that depicts the value of goods and services that are being demanded by an individual at…
Q: 3. One approach to the problem of pollution control in a market economy is to sell pollution…
A: Pollution permits provide businesses the legal right to pollute a specified amount. For example, 1…
Q: Define pollution charge and will our economy be able to control pollution? Share your thoughts in a…
A: Pollution charges or tax refers to the amount of tax that is imposed by the government to reduce…
Q: 1. The total cost of Firm D eliminating 4 units of pollution 2. Determine the total cost of…
A: 1. A market is a place where the buyers and the sellers interact with each other and the exchange of…
Q: Andrew, Beth, and Cathy live in Lindhville. Andrew’s demand for bike paths, a public good, is given…
A: Given information: 1) Andrew’s demand for bike paths: Q = 12–2P. 2) Beth’s demand: Q = 18–P, 3)…
Q: 4. The following diagram shows the marginal pollution cleanup costs for a firm. The firm is…
A: The cost of an extra unit is measured by marginal cost, which is an economic term.In general, the…
Q: p. If firms' abatement costs fall, how, if at all, does this affect the amount of pollution that…
A: Abatement Cost refers to the cost that is borne by the firms when they are required to remove/…
Q: Quantity Marginal of Total Cost of Pollution Cost Reduction Reduction 1 20 20 2 50 30 3 110 60 4 200…
A: Answer - Given in the question -
Q: There are three industrial firms in Happy Valley. Initial Pollution Cost of Reducing Firm Level…
A: The marginal abatement cost (MAC) which measures the cost of reducing one unit of pollution is $20,…
Q: The Government of Yokuku considers applying one of the following policies: a tax or a standard, in…
A: The marginal abatement cost (MAC) is the cost incurred to reduce one more unit of pollution…
Q: Suppose that a firm’s emissions and Marginal Abatement Cost (MAC) data are summarized in the table…
A: Permit to Work is a methodical cycle intended to distinguish, convey, alleviate and control risk in…
Q: Figure: Three Firms That Pollute Reference: Ref 16-3 Figure: Three Firms that Pollute (Figure:…
A: Given: To Find: At what tax rate would firm C produce a positive amount of pollution:
Q: Explain how the positive externalities normally created by activities such as snow shovelling lead…
A: Externalities are the cost or benefit of an economic transaction incurred on a third party who is…
There are three industrial firms in the county.
-Firm A's initial pollution level is 50 units. Its cost of reducing pollution by 1 unit is $30.
-Firm B's initial pollution level is 40 units. Its cost of reducing pollution by 1 unit is $20.
-Firm C's initial pollution level is 30 units. Its cost of reducing pollution by 1 unit is $40.
The government wants to reduce pollution to 90 units so it gives each firm 30 tradable pollution permits.
(i) Who sells permits?
(ii) How many do they sell?
(iii) Who buys permits?
(iv) How many do they buy?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- There are three industrial firms in a town Firm Initial Pollution Level Cost of Reducing Pollution by 1 Unit A 30 units $20 40 units 20 units B с $30 $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. 1. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? 2. How much higher would the costs of pollution reduction be if the permits could not be traded?There are three industrial firms in Kitona. The Government wants to reduce pollution to 120 units, so it gives each firm 40 tradable pollution permits. Firm Initial Pollution Level Cost reducing pollution by 1 unit A 70 Units $20 B 80 Units $25 C 50 Units $10 Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation?There are three industrial firms in Kitona. The Government wants to reduce pollution to 120 units, so it gives each firm 40 tradable pollution permits. Firm Initial Pollution Level Cost reducing pollution by 1 unit A 70 Units $20 B 80 Units $25 C 50 Units $10 Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? How much higher would the cost of pollution reduction be if the permits could not be traded?
- 17. Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. From now on both firms will require a pollution permit for each tonne of pollution dumped. The government gives each firm 20 tonnes' worth of pollution permits, which it can either use or sell to the other firm. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. After the two firms buy or sell pollution permits from each other, what would we expect that Firm A and Firm B will dump? a Firm A will dump 10 fewer tonnes of pollution into the river, and Firm B will dump 50 fewer tonnes of pollution into the tiver. b. Firm A will dump 50 fewer tonnes of pollution into the iver, and Firm B will dump 10 fewer tonnes of pollution into the river. c. Firm A will dump 50 fewer tonnes of pollution into the river, and Firm B will dump 10 more tonnes of pollution into…There are three identical firms in Happy Valley. Firms Initial Pollution Level Cost of Reducing Pollution by 1 unit A 30 units $20 B 40 units $30 C 20 units $10 The government wants to reduce total pollution to 60 units, so it gives each firm 20 tradable permits. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so? What is the total cost of pollution reduction in this situation? How much larger would the cost of pollution reduction be if the permits could not be traded?The table below shows the marginal cost for three firms to clean up units of pollution. Marginal Cost ($) to clean... Firm 1 ton of pollution 2 tons of pollution 3 tons of pollution US Steel 155 580 860 Ford 220 865 1280 Apple 1200 1600 1915 Suppose the government gives every firm enough permits so that, without trade, every firm must clean two units of pollution. What. will the cost be to every firm, and the cost to clean 6 units of pollution? The market price for a permit is $1400. Net Cost for US Steel = $ Net Cost for Ford = $ Net Cost for Apple = $ Societal cost to clean = $ F12
- The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park. Each permit allows the owner to release one tonne of pollutants into the atmosphere. Price perPollution Permit Quantity of Permits $4,500 75 4,000 150 3,500 225 3,000 300 2,500 375 2,000 450 1,500 525 a. If no fee for a pollution permit were charged, how many tonnes of pollutants would be discharged into the atmosphere, assuming a straight-line demand curve? Quantity: tonnesb. Suppose government were to set a fee of $3,500 per pollution permit. How many tonnes of pollutants would now be dumped? What is the total revenue received by government? Quantity: tonnes Total revenue: $ c. Suppose that a new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for pollution permits in the industrial park drops by 150 tonnes. Assuming that government holds the permit fee at $3,500, how many tonnes of…Firm A currently dumps 243 tons of chemicals into the local river. Firm B currently dumps 126 tons of chemicals into the local river. The government has decided 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 Firm A 61 pollution permits and gives Firm B 65 pollution permits. The abatement costs of one ton of pollution is $113 for Firm A and $165 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?wo firms, A and B, each currently dump 50 tonnes of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each tonne of pollution dumped into the river. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. The government gives each firm 20 pollution permits. Government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. What is the total cost of reducing pollution if the firms are NOT allowed to buy and sell pollution permits from each other, and what is the total cost of reducing pollution if the firms ARE allowed to buy and sell permits from each other? A. $4500; $2500 B. $3000; $1500 C. $4500; $3500 D. $4500; $4000
- Firm A currently dumps 161 tons of chemicals into the local river. Firm B currently dumps 127 tons of chemicals into the local river. The government has decided 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 Firm A 13 pollution permits and gives Firm B 43 pollution permits. The abatement costs of one ton of pollution is $175 for Firm A and $60 for Firm B. What would be the total cost of reducing pollution, if the firms are allowed to trade permits between each other?Scenario 2. Two firms, A and B, each currently dump 50 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. It costs Firm A $100 for each ton of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each ton of pollution that it eliminates before it reaches the river. The government gives each firm 20 pollution permits. Government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. Refer to Scenario 2. What is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? if firms are not allowed to buy and sell pollution permits from each other?Table 16.1 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution. Table 16.1 Firm A Firm A Firm A Firm B Firm B Firm B MC of TC of Reduction of reducing MC of TC of reducing Pollution by pollution for pollution for Pollution by pollution for pollution for Reduction of reducing reducing Firm A Firm A Firm A Firm B Firm B Firm B 1 $4 $4 1 $8 $8 10 12 20 9. 19 3 16 36 4 13 32 4 20 56 5 18 50 5 24 80 Refer to Table 16.1. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. Which of the following are true? (Select all that apply.) O a. Firm B would be willing to pay $16 to buy a pollution permit O b. Firm A would be willing to sell a pollution permit for $9 O c. Firm B would be willing to sell a pollution permit for $9 O d. If trading is allowed, the total cost of reducing…