Question
Suppose that two firms, X and Y, face the following abatementcosts: MAC X =1.2 A X ,MAC Y = 0.3 A Y TAC X =
Suppose that two firms, X and Y, face the following abatementcosts:
MACX =1.2AX, MACY
= 0.3AY
TACX = 0.6AX2
TACY
= 0.15AY2
Further assume that the combined abatement standard is 40 units forboth firms.
Based on the model given, the cost-effective solution would ariseif
each firm abates 20 units of pollution
firm X abates 8 units, and firm Y abates 32 units
firm Y does all the abating because its MAC islower
firm X abates 24 units, and firm Y abates 16 units
Suppose that two firms, X and Y, face the following abatementcosts:
MACX =1.2AX, MACY
= 0.3AY
TACX = 0.6AX2
TACY
= 0.15AY2
Further assume that the combined abatement standard is 40 units forboth firms.
Based on the model given, the cost-effective solution would ariseif
each firm abates 20 units of pollution | ||
firm X abates 8 units, and firm Y abates 32 units | ||
firm Y does all the abating because its MAC islower | ||
firm X abates 24 units, and firm Y abates 16 units |
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
