Question

In: Economics

Showing results for two firms each have the option of polluting during production of cleaning up...

Showing results for two firms each have the option of polluting during production of cleaning up their production process such that they do not pollute. Of course, polluting is cheaper than not polluting. The payoffs for each of the choice combination are shown in the decision matrix in figure 9Q2. the government would like to stop pollution by making it illegal and charging a fine if a firm is found polluting. how large does not the fine need to be to keep a firm from polluting.

Solutions

Expert Solution

Pollution can be reduced by us by strict observation of following aspects:

1. Reducing the use of personal vehicles and using mass transportation facilities

2. Using battery operated vehicles and using sustainable energy

3. Harnessing solar energy and preventing use of coal and non renewable resources

4. Following water efficient theories and water harvesting philosophy

5. Reduce reuse substitute technology implementation

6. Constructing Green Buildings and following green architectural principles- passive building concepts

7. Application of energy conservation in all infrastructure projects

8.Using building automation and controls for reducing energy, water and wastewater generation

Environmental protection and pollution control, including waste management, should be considered a cost of providing a product or service. Consumers, taxpayers and ratepayers must expect to pay some of the cost

  • measures to reduce vehicular pollution,
  • including inspection and maintenance of emission controls,
  • changes in engine design and fuel types and development of more energy-efficient transportation systems;
  • regulation and reduction of pollution from stationary sources;
  • regulation and reduction of ambient toxic-air pollutants;
  • measures to reduce transboundary air pollutants, such as ozone and those that cause acid deposition.

Doing something to harm the environment deliberately or by being careless can result in a pollution fine or penalty.

As well as financial cost, a prosecution under the Resource Management Act 1991 (RMA) can damage your reputation.

Pollution penalties range from $300 to $600,000. Fines go up to $300,000 for an individual and $600,000 for a business. Continuing offences can be penalised at $10,000 per day, or up to two years in prison and company employees, contractors, managers and agents can be liable for fines.


Related Solutions

​​The Credit River has two polluting firms on its banks. Plants A and B each dump...
​​The Credit River has two polluting firms on its banks. Plants A and B each dump 100 tonnes of effluent into the river each year. The cost per tonne of reducing emissions is $20 for plant A and $100 for Plant B. The government wants to reduce overall pollution from 200 tonnes to 50 tonnes. a. If the government knew the cost of reduction for each firm, what reductions would it impose in order to achieve its overall goal at...
Suppose that two polluting firms have marginal abatement costs given by the following equations: MAC1 =...
Suppose that two polluting firms have marginal abatement costs given by the following equations: MAC1 = 50 – 5e1 and MAC2 = 40 – 4e2 where e1 and e2 are the emission levels of each firm respectively. The regulator’s goal is to reduce total pollution from the two firms to 8 units. a) Suppose that the regulator requires that each firm reduce their emissions to 4 units (i.e. they use a uniform standard). Compute each firm’s total abatement costs under...
Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of...
Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are as shown in the following table: Process (smoke) A (4 tons/day) B (3 tons/day) C (2 tons/day) D (1 ton/day) E (0 tons/day) Cost to Sludge Oil ($/day) 50 70 120 200 500 Cost to...
Two firms, LexCorp and Wayne Enterprises, have access to five production processes, each one of which...
Two firms, LexCorp and Wayne Enterprises, have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are as shown in the following table: Process (smoke) A (4 tons/day) B (3 tons/day) C (2 tons/day) D (1 ton/day) E (0 tons/day) LexCorp ($/day) 80 130 200 310 500 Wayne Enterprises ($/day) 150 190 240...
Lab Intermolecular Forces: Cleaning Up an Oil Spill Option 1 – Chemical Agents: To speed the...
Lab Intermolecular Forces: Cleaning Up an Oil Spill Option 1 – Chemical Agents: To speed the process of oil removal from the ocean interface, researchers use oil dispersants or surfactants, (specialized chemical agents) to break up the spill. These chemical function in the same way that dish soap functions when we wish to break up grease/oil when washing dirty dishes. Basically, these chemicals work to mix oil and water better than normally possible so that the oil sinks deeper into...
1. Consider the problem of two polluting sources in the region, each of which generated 10...
1. Consider the problem of two polluting sources in the region, each of which generated 10 units of pollution for a total of 20 units released into the environment. The government determined that emissions must be reduced by 12 units across the region to achieve the ”socially desirable level of pollution”. Each firm faces different abatement cost conditions modelled as follows: for Polluter 1, marginal abatement cost is MAC1 = 2.6Q1, while the total abatement cost is TAC1 = 1.3(Q1)2....
Assume two firms in a relevant antitrust market each have 20% market share, three other firms...
Assume two firms in a relevant antitrust market each have 20% market share, three other firms each have 15% market share, one firm has 10% market share, and one firm has 5% market share. Compute the pre-merger HHI. If the two largest firms propose to merge and offer to divest a plant equal to 10% market share to the smallest market share firm in the market, what is the post-merger, post-divestiture HHI and change in HHI? Would you expect the...
There are 20 firms in a perfectly competitive industry. Ten firms have production function q =...
There are 20 firms in a perfectly competitive industry. Ten firms have production function q = 2L^0.5 while the other ten firms have production function q = 4L^0.5. We label the first type of firms, “low productivity” and the second type of firms, “high productivity.” All firms sell their output at a unit price of P = $1. All firms are price takers in the labor market. Find the profit maximizing demand for labor of the two types of firms....
You are evaluating two contractors for cleaning up Superfund sites. You oversee the cleanup of mining...
You are evaluating two contractors for cleaning up Superfund sites. You oversee the cleanup of mining Superfund sites and factory-based Superfund sites. You are interested in selecting the contractor that has most often done the cleanup within the allotted time frame. Contractor A did 48 mining Superfund sites, finishing 12 of them on time. They also did 572 factory-based sites, finishing 183 on time. Contractor B has done 412 mining Superfund sites, finishing 105 on time. They also did 140...
The study problems below have a threat to the validity of their results. Match up the...
The study problems below have a threat to the validity of their results. Match up the most likely errors below to the studies indicated below. Potential errors: a) Confounding b) Selection bias c) Random sampling error d) Information bias Studies: 1. To test whether persons exposed to pesticides during early childhood were more likely to develop neurological problems, a case-control study was designed. The results were significant. Both cases and controls (age range: 45-85) were asked detailed questions about their...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT