a. Determine the individual MS functions for these two firms.
b. Initially, each firm must use its 15 permits to reduce its emissions and they are not allowed to trade carbon permits. Illustrate the reduction each firm will make in carbon emissions. How much will each firms pay for abatement?
c. Suppose the two firms are now allowed to trade (buy and sell) carbon permits. Which firms will buy permits and which firms will sell permits and how many permits will be traded between the firms? Why will they take this action?
d. What will be the equilibrium permit price in this market?
Recently Asked Questions
- Calculate the average ml of oxygen molecules in 100 ml blood in the athletes at low altitude and then in athletes in high altitude while training at high
- Suppose registers R0 and R1 already hold single 64-bit quantity with the most significant 32 bits in R1 and the least significant 32 bits in R0. Give a
- Search online for a political photograph from the current calendar year that you believe will change the history of the current calendar year and post it