Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 09, 2024

Suppose a polluting firm in a competitive industry has MAC = 360 - 3E. Using a subsidy program, if the government wants to reduce emissions

Suppose a polluting firm in a competitive industry has MAC = 360 - 3E. Using a subsidy program, if the government wants to reduce emissions from this firm to 80 units,

(a) what subsidy rate should be applied ?

(b) what is the amount of social costs of reducing emissions to 80 units?

[ Show some work to justify your answer.]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

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

Step: 2

Step: 3

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

Auditing Cases An Interactive Learning Approach

Authors: Steven M Glover, Douglas F Prawitt

4th Edition

978-0132423502

Students also viewed these Economics questions

Question

Forget the mistakes of the past and move on to the greater achievements of the future.

Answered: 1 week ago

Question

★★★★★

Martha Jansa executed a will naming her two sons as executors and leaving all her property to them. The will was properly signed and attested to by witnesses. Thereafter, Martha died. When Marthas...

Answered: 1 week ago

Question

★★★★★

On September 30, 2020, the balance in Siakam Supplies Limiteds (SSL) accounts receivable account was $95,860 and the allowance for doubtful accounts had a credit balance of $6,000. SSL uses the aging...

Answered: 1 week ago

Question

★★★★★

You are the management accountant of publishing and printing company which has been asked to quote for the production of program for the local village fair. The work would be carried out in addition...

Answered: 1 week ago

Question

★★★★★

Tesla Roadster, Chevy Volt and Nissan Leaf. BMW thinks it can learn from all of the problems these companies had with the new technology and could reduce R&D costs substantially and create a better...

Answered: 1 week ago

Question

★★★★★

a random sample of 780 births in new york state included 385 boys and that sample is to be used for a test of the common belief of male births in the population is equal to 0.512. in testing the...

Answered: 1 week ago

Question

★★★★★

BEMC received several improper payments innocently. It was not their intention to trick the payer into these payments. In this situation, it is the most innocent of reasons for improper payments...

Answered: 1 week ago

Question

★★★★★

6-2 Building Industry-Recognized Skills Submission: Power BI Series A PivotTable is used for

Answered: 1 week ago

Question

★★★★★

At the beginning of your project, you solicit bids from vendors to select the one that is best for the project. Which procurement document should you prepare to fulfill this task? 1 point Request for...

Answered: 1 week ago

Question

★★★★★

Differentiate the Simons, R. (2000) typology of capital investment types, clearly providing relevant examples and cases to enhance your discussion.

Answered: 1 week ago

Previous Question Next Question