Which of the following is not true about a cap-and-trade system: select one:
a. a cap-and-trade system is considered a market based policy instrument
b. the marginal cost of abatement will be equal across all firms
c. a cap-and-trade system is considered a command and control regulation
d. the low abatement cost firms will sell permits to high abatement cost firms

How supply and demand work together to reach the equilibrium price in the marketplace? give at least a paragraph. you!

The simple interest in a loan of $200 at 10 percent interest per year is

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?