Business, 08.04.2020 04:49, kaykayhodge

Two firms located along a river generate pollution. The marginal benefit (MB) that each firm earns (in dollars) as a function of the pollution that it generates (profits from an additional unit of pollution) is provided below, where x_i represents the units of pollution generated by firm i. MB1 = 40 – 2x1 MB2 = 10 – x_2/2 If the regulator places a tax on pollution of $6 per unit, what is the total quantity of pollution generated by the two firms? (15 points) The tax in part (b) is a cost-effective way of reducing pollution. What would you need to know about the damages associated with pollution to determine whether the tax is socially efficient (maximizes net social benefits)? (10 points)

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:10, kingbob101

Jackson is preparing for his hearing before the federal communications commission (fcc) involving a complaint that was filed against him by the fcc regarding the interruption of radio frequency. the order to "cease and desist" using the radio frequency has had a detrimental impact on his business. once the administrative law judge prepares his or her initial order, jackson has no further options. no, jackson can request that the matter be reviewed by an agency board or commission. yes, once the initial order is presented, it's only a matter of time before the order becomes final.

Answers: 3

continue

Business, 22.06.2019 07:00, ronnie7898

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Answers: 1

continue

Business, 22.06.2019 13:50, 2023apd

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.

Answers: 2

continue

Business, 22.06.2019 14:20, dieguezisabel

In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5

Answers: 1

continue

Do you know the correct answer?

Two firms located along a river generate pollution. The marginal benefit (MB) that each firm earns (...