BASD505 Assignment 3 - BASD 505 Environmental Economics,...

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BASD 505 Environmental Economics, Management and Technology ASSIGNMENT 3 Samantha Shamash Jaclyn McPhadden Nicole Goldberger Howe Gu Question 1 a) Z AGG = 20Z A + 20Z B MAC A = 200-2Z A MAC B = 400-2Z B Z A = 100- 0.5MAC A Z B = 200- 0.5MAC B 20* Z A = 2,000 10MAC a 20* Z b = 4,000 10MAC a 10 MAC A = 2000 - Z A 10 MAC B = 4,000 - Z B MAC A = 200 0.1Z A MAC B = 400 0.1Z B So Z AGG = (2,000- 10MAC A )+ (4,000- 10MAC b ) Z AGG = 6,000- 20 MAC AGG Invert so that MAC AGG = 300 0.05 Z AGG The equation for MAC AGG represents the mathematical description of the line in the aggregate curve of the graph. -100 0 100 200 300 400 500 0 300 600 900 1200 1500 1800 2100 2400 2700 3000 3300 3600 3900 4200 4500 4800 5100 5400 5700 6000 MAC(a) MAC(b) MAC(Agg) MD MAC= $300 Z= 1000
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BASD 505 Environmental Economics, Management and Technology 200-Z(a)/10 400-Z(a)/10 300-Z(agg)/20 0.3Z(agg) Z MAC(a) MAC(b) MAC(Agg) MD 0 200 400 400 0 100 190 390 390 30 200 180 380 380 60 300 170 370 370 90 400 160 360 360 120 500 150 350 350 150 600 140 340 340 180 700 130 330 330 210 800 120 320 320 240 900 110 310 310 270 1000 100 300 300 300 1100 90 290 290 330 1200 80 280 280 360 1300 70 270 270 390 1400 60 260 260 420 1500 50 250 250 450 1600 40 240 240 480 1700 30 230 230 510 1800 20 220 220 540 1900 10 210 210 570 2000 0 200 200 600 2100 -10 190 195 630 2200 -20 180 190 660 2300 -30 170 185 690 2400 -40 160 180 720 2500 -50 150 175 750 2600 -60 140 170 780 2700 -70 130 165 810 2800 -80 120 160 840 2900 -90 110 155 870 3000 -100 100 150 900 3100 -110 90 145 930 3200 -120 80 140 960 3300 -130 70 135 990 3400 -140 60 130 1020 3500 -150 50 125 1050 3600 -160 40 120 1080 3700 -170 30 115 1110 3800 -180 20 110 1140 3900 -190 10 105 1170 4000 -200 0 100 1200 4100 -210 -10 95 1230 4200 -220 -20 90 1260 4300 -230 -30 85 1290 4400 -240 -40 80 1320 4500 -250 -50 75 1350 4600 -260 -60 70 1380 4700 -270 -70 65 1410 4800 -280 -80 60 1440 4900 -290 -90 55 1470 5000 -300 -100 50 1500 5100 -310 -110 45 1530 5200 -320 -120 40 1560 5300 -330 -130 35 1590 5400 -340 -140 30 1620 5500 -350 -150 25 1650 5600 -360 -160 20 1680 5700 -370 -170 15 1710 5800 -380 -180 10 1740 5900 -390 -190 5 1770 6000 -400 -200 0 1800
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BASD 505 Environmental Economics, Management and Technology This shows us that for emission reductions from 300 to 100 units of PCB, the MAC agg function is 300- 0.05Z agg , however after emissions are reduced to 100 units, the MAC agg is simply the same function as MAC b (400-2Z a ). b)
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This note was uploaded on 04/21/2010 for the course BUSINESS basd505 taught by Professor Clive during the Spring '10 term at The University of British Columbia.

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BASD505 Assignment 3 - BASD 505 Environmental Economics,...

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