A polluter has abatement costs given by MAC = 405-0.15E, and the emissions cause damages given by MD = 0.1E. The government has a law that requires the polluter to pay for damages they cause, but they will only have to pay if the government
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- Suppose that speeding imposes externalities on other people resulting in a social cost of $50. A town is considering hiring an extra police officer to give out speeding tickets. If we want to maximize social welfare (absent enforcement costs), which 13. of the following statements are true? (Assume risk neutral drivers.) If the probability of detection with the extra police officer is 10%, then a a) speeding ticket should cost $55. If the probability of detection with the extra police officer is 10%, then a b) speeding ticket should cost $500. If the probability of detection with the extra police officer is 100%, then no one c) will speed. If the probability of detection with the extra police officer is 90%, then a speeding ticket should cost $59 None of the above d) e) What happens to the socially optimal cost of the speeding ticket if the town decides to hire the police officer? 14. b) It goes up a) It goes down c) The amount that it goes down depends on salary of the police officer…MAC = 94 - 0.04E MD = 0.01E The government sets an emission standard at E = 2000. The probability of getting caught polluting, however, is only 44%. If the polluter pollutes more than 2000 units they will have to pay a fine. The fine would have to be greater than or equal to $ to ensure polluters will comply with the emission standard.Find Pure Strategy Nash equilibirum then use following values for emissions.
- A state government hired a contractor for a road construction project. The contractor's type, its cost efficiency, is known to the government. There is a 2/5 probability o its construction cost being 4 (billion dollars per lane) and 3/5 probability of the cost being 6. More lanes yield more social benefit in-the form of faster travel and fewer accidents. The social value V (measured in billions of dollars ) from having N lanes on the highway is V=15N-2N^2/3. The government is interested in option N and writing a contract to maximize the benefit of the state (V) net of the fee paid to the contractor (call it F) ; G=V-F. Your goal as a government official is to design a pair of contracts to separate the types of contractor. You want the contractor to choose (Contract L: Build N, lanes and get paid RL dollars" if its cost type is low cost of $4 billion dollars per lane and to choose "Contract H : Build NH lanes and get paid RH dollars" if its cost type is high cost $6 billion dollars per…A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus isnonrival andnonexcludable . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of…A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm ZER F11 F12 F6 F7 F8 F9 F10 prt s
- A state government hired a contractor for a road construction project. The contractor's type, its cost efficiency, is UNKNOWN to the government. There is a 2/5 probability o its construction cost being 4 (billion dollars per lane) and 3/5 probability of the cost being 6. More lanes yield more social benefit in-the form of faster travel and fewer accidents. The social value V (measured in billions of dollars ) from having N lanes on the highway is V=15N-2N^2/3. The government is interested in option N and writing a contract to maximize the benefit of the state (V) net of the fee paid to the contractor (call it F) ; G=V-F. Your goal as a government official is to design a pair of contracts to separate the types of contractor. You want the contractor to choose (Contract L: Build N, lanes and get paid RL dollars" if its cost type is low cost of $4 billion dollars per lane and to choose "Contract H : Build NH lanes and get paid RH dollars" if its cost type is high cost $6 billion dollars…A physician purchases a particular vaccine on Monday of each week. The vaccine diust be used within the week following, otherwise it becomes worthless. The vaccine costss $ 2 per dose and the physician charges $ .4 per dose. In the past 50 weeks, the physician has administered the vaccine in the following quantities : Doses per Week Number of Weeks 20 25 15 50 25 60 On the basis of EMV, find how many doses the physician must purchase each week to maximise his profits ?There are two towns, A and B, each with a plant emitting pollution. The emission from plant Ais uniformly distributed across both town A and B. The emissions from plant B are local to town B. Despite the difference in affected area, the marginal benefit to either town of abating one unit of pollution from either source is the same, MB(Qi) = 17 − Qi per person, where Qi is total emissions abated from town i’s air. The marginal cost of abatement at plants A and B are MCA(qA) = 200qA and MCB(qB) = 100qB, respectively. If town A has 300 citizens and town B has 200, what is the efficient tax to set at each plant?
- cap-and-trade and windfall profitsA city called Seoul is suffering from high concentrations of mercury in the air, caused by burningcoal in power plants. There are two of these plants close to the city. The city’s mayor wants touse cap-and-trade to reduce emissions to a reportedly “safe” level of 60 tons. The two firms havethe following marginal benefits of emissions: MB1 = 100 – 2e1, MB2 = 25 – 0.5e2.a. How much mercury will each firm emit? What allowance price will prevail in themarket?Firm 2 hires a smart lobbyist who convinces the government that its profits are relatively low andthat it therefore deserves a generous allowance allocation. The government agrees and allocatesa1 = 20 allowances to firm 1 (for free) and a2 = 40 allowances to firm 2 (for free).b. What are the firms’ profits? Do any of the firms earn windfall profits? [Hint: compareprofits with and without regulation.] Windfall profits have been sharply criticized by consumer advocacy groups and politicians.c. What can…Why is the presentaion of corparate results increasingly accompanied by the presentation of a socially responsible bussines report. Provide 3 reasonsDiscuss externalities and government policies aimed at addressing them. Please Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer then i gave 24 dislikes for you and more from my friends accounts also.