Question

Question 06: Cost-effectiveness There are two companies that emit 600 tons of volatile organic compounds (VOCs) each; together, the utilities emit a total of 1200 tons of VOCs annually. The government has decided to set a limit for VOC emissions of 600 tons per year. Source A is a chemical manufacturer. Source B is a bakery with fewer political connections. Their MAC curves (as functions of their output levels) are a) What emission levels be assigned to each firm to achieve a cost-effective abatement of 600 units? What are their MACs at those emission levels? Draw two graphs to represent the firm's abatement and solve for the answer algebraically. Show your algebraic steps clearly. MACA(QA*) Q8 b) What is the total abatement cost for the cost-effective solution? Show this on the graphs.

Answer 1