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4. What is difference between Uniformly Mixed Pollutants, and Non Uniformly mixed pollutants? Suppose there are two firms, details of whose control costs are given
4. What is difference between Uniformly Mixed Pollutants, and Non Uniformly mixed pollutants? Suppose there are two firms, details of whose control costs are given in the table below: (20 marks) Firm 2 (ay = 1) (az = 2) Pollution units Marginal Cost of Pollution units Marginal Cost of reduced reduction reduced reduction Firm 1 1 1 1 1 2 2 3 2 3 2 3 4 4 3 4 5 4 5 5 5 6 6 6 6 7 7 7 7 a. Which Firm is nearer to the receptor? Explain. b. Calculate the "Concentration units reduced" and "Marginal Cost of Concentration Reduction for the two firms. C. Why is the Marginal Cost of concentration reduction different for the two firms despite having the same marginal control costs? d. Suppose the government wants to reduce 5 units of pollution. To reach this target efficiently, who should control how much pollution? What should be the tax charged to each firm to reach this target? 4. What is difference between Uniformly Mixed Pollutants, and Non Uniformly mixed pollutants? Suppose there are two firms, details of whose control costs are given in the table below: (20 marks) Firm 2 (ay = 1) (az = 2) Pollution units Marginal Cost of Pollution units Marginal Cost of reduced reduction reduced reduction Firm 1 1 1 1 1 2 2 3 2 3 2 3 4 4 3 4 5 4 5 5 5 6 6 6 6 7 7 7 7 a. Which Firm is nearer to the receptor? Explain. b. Calculate the "Concentration units reduced" and "Marginal Cost of Concentration Reduction for the two firms. C. Why is the Marginal Cost of concentration reduction different for the two firms despite having the same marginal control costs? d. Suppose the government wants to reduce 5 units of pollution. To reach this target efficiently, who should control how much pollution? What should be the tax charged to each firm to reach this target
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