Equations for Midterm 2 Flashcards

1
Q

Pollution Reduction Cost Formula

A

PRC = (Reduced Pollution Amount)(1/2)(MCR #)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How to find the quantity emitted under a pollution tax?

A

Example: $120 = 0.03Q
Q = 4000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How to find the total net cost with revenue from selling permits?

A

TNC = PRC - Revenue from selling permits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How to find the total net cost with costs from buying permits?

A

TNC = PRC + Costs from buying permits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How do you find the efficient allocation of resources between two generations?

A

MNB1 = PV[MNB2]

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How to find the total net benefit?

A

TNB = (1/2)(BASE)(HEIGHT)

Base = quantity number
Height = first value for MNB equation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly