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Business, 18.09.2019 20:00, nommies005

Three methods the government can use to cope with the external cost from pollution are

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Business, 25.06.2019 10:10, dozsyerra
Suppose the government wants to reduce the total pollution emitted by three local firms. currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. if the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: available methods to reduce pollution 1. the government sets pollution standards using regulation. 2. the government allocates tradable pollution permits. each firm faces different costs, so reducing pollution is more difficult for some firms than others. the following table shows the cost each firm faces to eliminate each unit of pollution. for each firm, assume that the cost of reducing pollution to zero (that is, eliminating all 4 units of pollution) is prohibitively expensive. firm cost of eliminating the . . first unit of pollution second unit of pollution third unit of pollution (dollars) (dollars) (dollars) firm x 80 130 210 firm y 75 90 130 firm z 550 700 1,075
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Business, 09.09.2019 19:10, rbriezz
Two firms, a and b, each currently emit 100 tons of chemicals into the air. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. the government gives each firm 40 pollution permits, which it can either use or sell to the other firm. it costs firm a $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs firm b $100 for each ton of pollution that it eliminates before it is emitted into the air. it is likely that a. both firms will use their own pollution permits. b. firm a will buy some of firm b's pollution permits. each one will cost less than $100. c. firm a will buy all of firm b's pollution permits. each one will cost between $100 and $200. d. firm b will buy all of firm a's pollution permits. each one will cost between $100 and $200.
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Business, 04.11.2019 22:31, estefaniapenalo
Meanwhile, the other employee proposes using a different strategy to achieve the government’s goal of reducing pollution in the area from 12 units to 6 units. he suggests that the government issues two pollution permits to each firm. for each permit a firm has in its possession, it can emit 1 unit of pollution. firms are free to trade pollution permits with one another (that is, buy and sell them) as long as both firms can agree on a price. for example, if firm x agrees to sell a permit to firm y at an agreed-upon price, then firm y would end up with three permits and would need to reduce its pollution by only 1 unit while firm x would end up with only one permit and would have to reduce its pollution by 3 units. assume the negotiation and exchange of permits are costless.because firm z has high pollution-reduction costs, it thinks it might be better off buying a permit from firm y and a permit from firm x so that it doesn't have to reduce its own pollution emissions. at which of the following prices are both firm y and firm x willing to sell one of their permits to firm z ? check all that apply.$128$135$181$410$424suppose the the government has set the trading price of a permit at $303 per permit.complete the following table with the action each firm will take at this permit price, the amount of pollution each firm will eliminate, and the amount it costs each firm to reduce pollution to the necessary level. if a firm is willing to buy two permits, assume that it buys one permit from each of the other firms. (hint: do not include the prices paid for permits in the cost of reducing pollution.)firminitial pollution permit allocationactionfinal amount of pollution eliminatedcost of pollution reduction(units of pollution)(units of pollution)(dollars)firm x 2 firm y 2 firm z 2 regulation versus tradable permitsdetermine the total cost of eliminating six units of pollution using both methods, and enter the amounts in the following table. (hint: you might need to get information from previous tasks to complete this table.)proposed methodtotal cost of eliminating six units of pollution(dollars)regulation tradable permits in this case, you can conclude that eliminating pollution is costly to society when the government distributes tradable permits than when it regulates each firm to eliminate a certain amount of pollution.
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Business, 12.11.2019 21:31, carleygalloway103
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. the government will sell 40 pollution permits for $75 each. 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. neither firm produces any less output, but they both conform to the law. it is likely that between the cost of permits and the cost of additional pollution abatement. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other?
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