Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

02 Question 2points) B See page 670 There are two factories in 2 small town. Both of them emit carbon dioxide into the air. Their

image text in transcribed
02 Question 2points) B See page 670 There are two factories in 2 small town. Both of them emit carbon dioxide into the air. Their current monthly emissions, as well as their total costs for reducing emissions in 20-ton increments, are listed in the tables below. Factory 1 Current emissions (tons/month) Total cost of reducing emissions by 20 tons/month 50 Total cost of reducing emissions by 40 tons/manth 150 Total cost of reducing emissions by 80 tons/month 270 Total cost of reducing emissions by 80 tons/maonth Total cost of reducing emissions by 100 tons/month 570 Factory 2 Current emissions (tons/month) Total cost of reducing emissions by 20 tons/month 220 Total cost of reducing emissions by 40 tons/maonth &0 Total cost of reducing emissions by 80 tons/month 110 Total cost of reducing emissions by 80 tons/maonth 200 Total cost of reducing emissions by 100 tons/maonth 300 4th attempt ) SeesHint Azsume that the existing technaology does not allow for reductions in emissions beyond 100 tons/maonth. That is, the most each factory can reduce its emissions is 100 tons/month. Also assume that if 2 factory owner is indifferent between reducing pallution ar paying taxes, the factory owner will choose to reduce pollution. With those assumptions in mind, suppose the government has 2 goal of reducing total monthby emissionz by 0 tons. To achieve thiz goal, the government has decided to impose a tax on pollution. That is, for every 20-ton emission, a factory will have to pay some amount of money. To achieve (but not exceed) the desired reduction in emissions, the taxwill have to be set equal to or zbove 3 50 but below $ (110 per 20 tons/month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finite Mathematics For Business Economics Life Sciences And Social Sciences

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

14th Edition

0134862627, 9780134862620

Students also viewed these Economics questions

Question

I need help Suppose T R in the -then bpjL a regioO 4

Answered: 1 week ago