Expert Q&amp;A Done need help asap provided the answer to proposal 1 but .docx - Expert Q&A Done need help asap provided the answer to proposal 1 but i

# Expert Q&A Done need help asap provided the answer to proposal 1 but .docx

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Expert Q&A Done need help asap provided the answer to proposal 1 but i dont know how they calculate it can somebody explain? p. Bartond Homer each operate a factory that pollutes the river and and horms Lisa's fighe Reducing their emissions is costly for both producers. Bort's morginal cost of abatement MAC, 500 - 10e, Homer's marginal abatement cost is MAC, 1000 - 20e. The power ment has decided that harmful emissions into the river need to be reduced by 18 units. To achieve this goal three proposals are under consideration Proposal Use a command and control approach. Bart and Homer must share the required emission

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Unformatted text preview: reductions equally Proposal 2. Impose an emissions fee of Si20 per unit of pollutant. Proposal Introduce a cop and trade program. The government issues 82 permits Bart and Homer och get an equal share of the permits, which are distributed for free a. Briefly describe how each of the three proposals works to ensure emissione fall bw I n Under proposal 1, Bart and Homer both reduce emissions from 50 units to batement costs equal to S405 (area A in the panel a below) while Homer. 1810 (arcas A+B in panel a), for total abatement costs equal to \$1215. e e...
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• Winter '19
• Richard Levi

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