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?
Answers: 3
Business, 21.06.2019 18:00
You want to make an investment in a continuously compounding account over a period of two years. what interest rate is required for your investment to double in that time period? round the logarithm value and the answer to the nearest tenth.
Answers: 3
Business, 22.06.2019 12:00
Identify at least 3 body language messages that project a positive attitude
Answers: 2
Business, 22.06.2019 15:30
Careers in designing, planning, managing, building and maintaining the built environment can be found in the following career cluster: a. agriculture, food & natural resources b. architecture & construction c. arts, audio-video technology & communications d. business, management & administration
Answers: 2
Business, 22.06.2019 19:00
Lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal.
Answers: 3
Two firms, X and Y, have access to 5 production processes (all of which produce the same quantity of...
Mathematics, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30
Computers and Technology, 18.12.2020 19:30
Spanish, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30
Arts, 18.12.2020 19:30
Social Studies, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30
Physics, 18.12.2020 19:30
Mathematics, 18.12.2020 19:30