Cars under 200 a month
[DOC File]Chapter 11: STANDARDS
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The individual standards are set at 34.3 kilograms/month for L and 85.7 kilograms/month for H. The cost-effective policy results in lower total costs of abatement to reach the target level of emissions. Total abatement costs are then the area under each polluter’s MAC curve from 120 to 60 kilograms. For L, TACL = 1/2(60 times $120) = $3,600 ...
[DOC File]SOLUTIONS TO TEXT PROBLEMS: Chapter 13
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e. A tax of $200 per unit is a bad idea, because it's in a region in which tax revenue is declining. The government could reduce the tax to $150 per unit, get more tax revenue ($15,000 when the tax is $150 versus $13,333 when the tax is $200), and reduce the deadweight loss (7,500 when the tax is $150 compared to 13,333 when the tax is $200).
[DOC File]CHAPTER 9—HYPOTHESIS TESTS
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Currently, the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testing the effect of the bonus plan is . a. H0: < 5 Ha: 5 b. H0: 5 Ha: > 5 c. H0: > 5 Ha: 5 d. H0: 5 Ha: < 5 ANS: B PTS: 1 TOP: Hypothesis Tests 62. Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on ...
[DOC File]Chapter 12: EMISSION TAXES AND SUBSIDIES
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Social Compliance Costs ($/month) Uniform Standard Emmission Tax (50 kilograms/month each) ($200 per kilogram) Polluter L 4,900 10,000 Polluter H 12,250 4,000 Total costs $17,150 $14,000 Note that the totals differ. Total abatement costs under the uniform standard are 22.5 percent larger than those of the emission tax. The simple reason is that the uniform standard violates the equimarginal ...
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