ZuoTi.Pro
Question

For MAC= 36-2E and MD= E, (i) What is the socially desirable level of emissions? (ii)...

For MAC= 36-2E and MD= E,
(i) What is the socially desirable level of emissions?
(ii) What is the amount of net social benefits received when the emission level is reduced to 10 units (i.e. E=10)?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Part 1 ) At socially desirable level of emissions, MAC = MD

Using MAC= 36-2E and MD= E,

MAC = MD

= 36-2E = E

= 36 = 3E

E = 12

Socially desired level = 12

Part 2) When E = 10,

MD = E = 10

MAC = 36-2E = 36-2*10 = 16

Net Social Benefits = MAC - MD = 16 – 10 = 6

1 0
Add a comment
Know the answer?
Add Answer to:
For MAC= 36-2E and MD= E, (i) What is the socially desirable level of emissions? (ii)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • please answer it asap The aggregate MAC function for some polluter is given by MAC=200-2E where...

    please answer it asap The aggregate MAC function for some polluter is given by MAC=200-2E where E is measured in millions of tons, and the MD function is given by MD = 2E.                        Graph both functions and solve for the socially-efficient level of emissions. What size emissions tax per ton is needed to achieve the socially-efficient level of emissions? Explain. Compute the total tax bill and total abatement cost to polluters if they reduced their emissions to the socially-efficient level....

  • What is the MAC of the 40th unit of abatement? Don't forget the dollar sign. Keep...

    What is the MAC of the 40th unit of abatement? Don't forget the dollar sign. Keep two decimal places even if the answer is an even dollar amount. MAC 100 MLAC-100-2E 50 Consider the figure below. What is the dollar value of the total social benefit of reducing emissions from the unregulated quantity to the socially-efficient quantity? Include the dollar sign, don't leave any spaces in your answer and include two decimal places even if your answer is an even...

  • Consider a pulp mill that emits air and water pollution emissions (E) that impose negative external...

    Consider a pulp mill that emits air and water pollution emissions (E) that impose negative external costs (damages) onto society. The aggregate marginal abatement cost (MAC) and marginal damage (MD) curves have been estimated follows: MAC = 800 − 20E MD = 20E a. On a diagram, plot the MAC and MD curves. Be sure to label the curves, calculate the vertical intercept and horizontal intercepts of the MAC line, and the intersection point of the two lines. Show all...

  • ECN510 Topic: Benefit-Cost Analysis Exercise Suppose a public program is proposed to lower the total pollution...

    ECN510 Topic: Benefit-Cost Analysis Exercise Suppose a public program is proposed to lower the total pollution emissions from 15 to 12 tonnes per month. The total benefits of the program are the total damages reduced (TB-TDR). The total cost (TC) is measured by the total abatement cost (TAC). 10 12 14 16 Tonnes of pollution Suppose also MD = 2E and MAC = 60 - 4E, where E-emissions. 1. Find the total damages reduced. 2. Find the total cost of...

  • Question 1 (1 point) 0.5E, the total damage cost of 20 units of For a marginal...

    Question 1 (1 point) 0.5E, the total damage cost of 20 units of For a marginal damage function equal to: MD emissions is __.- not possible to tell with the information given $100 $200 $10 Question 2 (1 point) Consider the following graph. What is the socially-efficient level of emissions? The equation for the marginal damages function is: MD 200 E MDC 900 200 MAC 1200 Emissions Question 3 (1 point) Suppose MAC1 100- 10E, MAC2 50 10E and MD...

  • Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the...

    Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the marginal private surplus from emissions (the private surplus from each additional small unit of emissions) is described by the following function where E is the argument. (E 864-24*E The marginal external cost (the cost of an additional small unit of emissions) to the third parties is described by the following function. McEtemal(E) - 216 Units for MSrivae and MCEteal are S/t CO2 (where t...

  • Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the...

    Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the marginal private surplus from emissions (the private surplus from each additional small unit of emissions) is described by the following function where E is the argument. (E 864-24*E The marginal external cost (the cost of an additional small unit of emissions) to the third parties is described by the following function. McEtemal(E) - 216 Units for MSrivae and MCEteal are S/t CO2 (where t...

  • Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the...

    Let E represent global emissions of CO2 from fossil fuel burning and cement Suppose that the marginal private surplus from emissions (the private surplus from each additional small unit of emissions) is described by the following function where E is the argument. (E 864-24*E The marginal external cost (the cost of an additional small unit of emissions) to the third parties is described by the following function. McEtemal(E) - 216 Units for MSrivae and MCEteal are S/t CO2 (where t...

  • Suppose that in the absence of any corrective measures, the economy generates 750 megatonnes (Mt) of...

    Suppose that in the absence of any corrective measures, the economy generates 750 megatonnes (Mt) of GHG emissions (E) per year. The damage created by an additional Mt of emissions is called the marginal damage. Assume the marginal damage function is MD=0.04 E. Thus, if E= 750 Mt, the additional damage to society associated with one more Mt of emissions is $30. The marginal abatement cost, the additional cost associated with a one Mt reduction in emissions, is given as...

  • Part II: Market Failure in the Passenger Airline Industry and Policy (30%) For full marks: Craphs:...

    Part II: Market Failure in the Passenger Airline Industry and Policy (30%) For full marks: Craphs: Plot graphs to scale on graph paper by hand, include a figure number, title, and label all axis including correct units, be neat and tidy and put in order in the assignment. Introduce the graph with a sentence before it. 2) For algebra, use short sentences to guide the reader (SSTGR) through your work. Example: "To find the perfectly competitive market equilibrium global daily...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT