Suppose that there are three firms in a region that are producing a common emission. The marginal abatement cost (MAC) for each firm is given by:

MAC1 = 240 – 2E1

MAC2 = 192 – 1.6E2

MAC3 = 320 – 2.67E3

The marginal damage function for the region is given as MD = (4/3)ET {where ET = E1 + E2 +E3}

a) Find the aggregate MAC for the region.

b) Find the socially optimal level of Emissions for the region

c) Suppose that the government imposes a Uniform Standard on the three firms that achieves the socially optimal level. What will be each firm’s MAC and TAC?

d) Now, instead of a standard, the government uses an Emission Tax. Find the tax rate that achieves the socially optimal level of emissions. Determine each firms emissions, TAC, and Tax Bill. Compare the total cost to each firm from a tax policy to your answer in (c).

e) Suppose the government decides to use a Marketable Permit program. If permits are initially given to each firm in the amount equal to the uniform standard, then:

e1). Determine the final allocation of permits (after trading)

e2). What is the net cost to each firm (TAC plus/minus permit revenues/costs)

e3). Compare each firm’s total cost under permit system to that of the uniform standard and the emission tax.

8pts

Illustrate and explain how fiscal policy might be used to deal with the crisis you modelled in the previous question. Can fiscal policy do a good job of fixing the problem? What are some practical problems or consequences of implementing fiscal policy in this situation?

Previous Question

8pts by applying the AD-SAS-LAS model, model the short-run and long-run economic impacts of the current COVID-19 crisis, assuming no fiscal or monetary intervention. Are the predictions of your modelling exercise consistent with the economic outcomes we are currently observing?

Discuss a Fiscal Policy and how it impacts you as an individual (Recent Stimulus Bills, Income Taxes, Excise Taxes or any other law, regulation or standard. Be aware Monetary Policy is NOT a Fiscal Policy.

can some write a discussion about this topic, please

A machine that cost SAR 320,000 is owned by a cement factory. Salvage is estimated at SAR 75,000.
Compare book values for MACRS, DB (20%), DDB and standard SL depreciation over a 7-year recovery
period.

what the risk that faced Hyper Pandas retail company and how overcome this risk and how will be impacting on Hyper panda retail company success?

Consider a following zero-sum game of two players

a) Reduce the initial game to a 2x2 game. Eliminate only strictly dominated strategies. In the obtained

2x2 game name Player 1’s (Row player’s) strategies “Up” and “Down” and Player 2’s (Column

player’s) strategies “Left” and “Right”.

b) Find all Nash equilibria of the 2x2 game (both in pure and mixed strategies)

ALL ANSWERS MUST BE EXPLAINED.

2          0          1          -1

1          0          1          2

3          1          2          0

Consider a following zero-sum game of two players

a) Reduce the initial game to a 2x2 game. Eliminate only strictly dominated strategies. In the obtained 2x2 game name Player 1’s (Row player’s) strategies “Up” and “Down” and Player 2’s (Column player’s) strategies “Left” and “Right”.

b) Find all Nash equilibria of the 2x2 game (both in pure and mixed strategies)

ALL ANSWERS MUST BE EXPLAINED.

In the space below, use a supply and demand diagrams to illustrate the situation where demand increases and supply also increases (at the same time). Indicate what the model predicts about the change in equilibrium price and quantity. Carefully label your diagram and explain it. (HINT: three graphs) Explain all answers fully and give concluding sentences.

Explain how the tax system contribute to the development

Identify the field and explain how you would run your remote learning classroom, keep in mind you have students that have some disabilities, some students who don't understand english, some students who may not have technology. (a paragraph)

1. Under monopolistic competition, which of the following is true:

A) In the short run, the firm behaves as a firm in perfect competition.

B) In the long run equilibrium, firms will make positive profits.

C) If there are economic profits, in the long run new firms enter leading to a decrease in demand for the existing firm.

D) All of the above are true.

E) None of the above are true

2. In the market equilibrium, a single-price monopolist

A) always generates lower total surplus than in perfect competition

B) restricts output to increase profits

C) charges a price higher than the marginal cost

D) a, b, and c are true

E) always produces at an efficient scale

3. Which of the following statement(s) are true?

A) A single price monopolist producing in the inelastic part of the demand curve could increase its total revenue by increasing the price.

B) A single-price monopolist that maximizes profits never produces in the inelastic part of the demand curve

C) The total revenue of single-price monopolist is minimized when demand is perfectly elastic.

D) a and b are true

E) b and c are true

4. Which of the following statement(s) are true?

A) Unregulated natural monopoly produces at a socially efficient scale.

B) Natural monopoly under average-cost pricing produces at an efficient scale

C) Natural monopoly under marginal-cost pricing generates a deadweight loss.

D) b and c are true

E) none of the above are true