Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is socially desirable.
True
False
Answer
False
The tradable permits are issued equal to the social desirable pollution level and there is no polluting more than the desirable level.
The permits are cost-effective as it can be traded and the higher abatement cost companies pollute more and less cost reduce it more.
Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is...
With tradable permits, high polluters face a (the) ________cost of pollution reduction than low polluting firms and decrease emissions at a (the) _________than with reguation. a. same; lower b. lower; higher c. higher; same d. higher lower (side note: confirmed that lower higher is not the right answer. so it is either a, c, or d
For questions (2) and (3) suppose the government imposes an emission standard on the firms requiring Firm 1 to reduce emissions by 30 tons and Firm 2 to reduce emissions by 20 tons. Question 2 10 pts Does the emission standard bring about a cost-effective allocation of pollution control responsibility? Yes NO Question 3 10 pts Calculate the total cost of pollution control for Firm 1 and for Firm 2. TCC1 - $ TCC2 = $ rvices Consider an industry...
8. Problems and Applications Q8Suppose that the government decides to issue tradable permits for a certain form of pollution.True or False: It is more economically efficient in the market for pollution for the government to distribute the tradable permits than to auction them off.TrueFalseTrue or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth.TrueFalse
Unfavorable flexible budget variances are those that are the result of lower than expected sales volume. True or False
true or false: firms selling durable goods are more affected by financial distress than firms selling nondurable goods.
issuing equity is bad for existing shareholders because it dilutes earnings. new shareholders have claims to the firms earnings, so existing shareholders are worse off. as a result, stock prices drop. Is this true or false?
1.explain why there are more lines in the hydrogen emission spectrum than in the absorption spectrum? 2. indicate asborption, from a lower energy level to a higher energy level. Then indicate emission for the same transition as through various pathways, which would then result in many more emission peaks than there was in the original absorption (transition).
All else equal, firms produce more (in aggregate) in the Stackelberg setting than the Cournot setting. True False
TRUE OR FALSE A few firms with market power selling an identical product and competing over price arrive to the competitive equilibrium. In an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg model. In the presence of a negative externality generated by producing a good, a competitive market will produce less of that good than is socially optimal. An example of the tragedy of the commons is when farmers pump more groundwater from an...
savers are better off than those who borrow when the inflation level rises more quickly than planned. Consider if you support this statement as true or false and why. 1-2 sentences maximum