Equations for Midterm 2 Flashcards
1
Q
Pollution Reduction Cost Formula
A
PRC = (Reduced Pollution Amount)(1/2)(MCR #)
2
Q
How to find the quantity emitted under a pollution tax?
A
Example: $120 = 0.03Q
Q = 4000
3
Q
How to find the total net cost with revenue from selling permits?
A
TNC = PRC - Revenue from selling permits
4
Q
How to find the total net cost with costs from buying permits?
A
TNC = PRC + Costs from buying permits
5
Q
How do you find the efficient allocation of resources between two generations?
A
MNB1 = PV[MNB2]
6
Q
How to find the total net benefit?
A
TNB = (1/2)(BASE)(HEIGHT)
Base = quantity number
Height = first value for MNB equation