Environmental Economics: marginal abatement cost curves

Learning Goal: I’m working on a economics multi-part question and need an explanation and answer to help me learn.

Check Files below for the graph and Questions

Q5 (14 points) Suppose Alliance Energy (Firm A) and Beast Power Corp (Firm B) have the following
marginal abatement cost curves: MAC
= 240 – 2eand MAC= 120 – eB. The government has decided
that they would like to employ a market-based cap and trade solution to the pollution caused by these
firms, so they limit the total allowable emissions to 120 and give each firm 60 permits. Please answer
the following questions.
A. (4 points) Refer to the graph below that includes both firms Marginal Abatement Cost curves
(hint: have firm A’s emissions increase from left to right on the x axis, while firm B’s emissions
increase from right to left). Calculate and label the optimal number of emissions for each firm
on this graph. Show it step by step.

B. (6 points) Describe which firm is going to be buying and selling emission permits as well as how
many permits are being bought and sold. What is the price range for these permits and how
much will the last permit be bought and sold for?
C. (4 Points) Assume every permit is bought and sold at the final permit price calculated in part B.
Compare the total cost for both firms A and B before they traded permits (when they were
given 60 permits each) and again after trading permits. How much did firm A save by trading
permits? How much did firm B save by trading permits?

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.