subject
Business, 06.04.2020 18:11 fdasbiad

Two firms, X and Y, have access to 5 production processes (all of which produce the same quantity of retail
output). Each production process 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 A B C D E
Smoke 4 tons/day 3 tons/day 2 tons/day 1 ton/day 0 tons/day
Cost of X 60 70 100 200 400
Cost of Y 80 180 300 430 600

(a) If pollution is unregulated, what will be the daily smoke emission?

(b) The city council wants to curb smoke emissions by 50 percent. To accomplish this, it requires
each firm to curb its emissions by 50 percent. What will be the total cost to society of this policy?

(c) The city council wants to curb smoke emissions by 50 percent. Now, it sets a tax of T dollars per
day on each ton of smoke emitted. How large will T have to be to effect the desired reduction?

(d) Instead of taxing pollution, the city council decides to auction off four permits, each of which
entitles the bearer to emit 1 ton of smoke per day. No smoke may be emitted without a permit.
Suppose the government conducts the auction by starting at $1 and asking how many permits
each firm wants to buy at that price. If the total is more than four, it then raises the price by $1
and asks again, and so on, until the total quantity of demanded permits falls to four. How much
will each permit sell for in this auction? How many permits will each firm buy?

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 05:30, adazeb2003
Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.
Answers: 1
image
Business, 22.06.2019 22:50, esid906
Clooney corp. establishes a petty cash fund for $225 and issues a credit card to its office manager. by the end of the month, employees made one expenditure from the petty cash fund (entertainment, $20) and three expenditures with the credit card (postage, $59; delivery, $84; supplies expense, $49).record all employee expenditures, and record the entry to replenish the petty cash fund. the credit card balance will be paid later. (if no entry is required for a transaction/event, select "no journal entry required" in the first account record expenditures from credit card and the petty cash fund.
Answers: 2
image
Business, 23.06.2019 00:50, tami5
Hubert manages a grocery store in a country experiencing a high rate of inflation. to keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. his employees regularly deal with customer annoyance over the frequent price changes. this is an example of the of inflation.
Answers: 2
image
Business, 23.06.2019 02:00, brennarfa
Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.
Answers: 3
You know the right answer?
Two firms, X and Y, have access to 5 production processes (all of which produce the same quantity of...

Questions in other subjects:

Konu
Mathematics, 07.12.2020 21:50
Konu
Mathematics, 07.12.2020 21:50