E130PS4A

E130PS4A - D. P = $18. E. 1: Cost = 756 from purchasing...

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P r o f e s s o r V a l e r i e R a m e y Econ 130, Fall 2007 Abbreviated Answers to Problem Set #4 1. A. Z 1 = 18, Z 2 = 72, Z 3 = 90. MC = 18. TC 1 = 162, TC 2 = 648, TC 3 = 810. TC = 1620. B. MC 1 = 60, MC 2 = 15, MC 3 = 12. TC 1 = 1800, TC 2 = 450, TC 3 = 360, TC = 2610. C. They have an incentive to trade until MC are equalized.
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Unformatted text preview: D. P = $18. E. 1: Cost = 756 from purchasing permits 2: Revenue = 216 from selling permits 3: Revenue = 540 from selling permits F. TC 1 = 918, TC 2 = 432, TC 3 = 270, TC = 1620. Yes. Yes. G. MSC = (1/10) Z. 1...
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This note was uploaded on 09/08/2008 for the course ECON 130 taught by Professor Staff during the Winter '08 term at UCSD.

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