789.png Q3. a) Present value of net benefits = FV/(1+i)n PVN = 1090/(1+0.1)8 PVN = $5.9 billion b) Present value of net benefits = FV/(1+i)n PVN = 1090/ (1+0.1)8 PVN = $5.9 billion Q4 a) Here total cost is less than the total benefit therefore clear air act amendment pass the feasibility test. b) By analyzing the information on the table we can say that the policy leads to allocate resources efficiently Q5. The proposal is feasible when there is present value of benefits higher than its present value of cost.

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Answered 7 days After Apr 09, 2021

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Komalavalli answered on Apr 17 2021

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Q3.
a)
Present value of net benefits = FV/(1+i)n
PVN = 1090/(1+0.1)8
PVN = $5.9 billion
)
Present value of net benefits = FV/(1+i)n
PVN = 1090/ (1+0.1)8
PVN = $5.9 billion
Q4
a)
Here total cost is less than the total benefit therefore clear air act amendment pass the feasibility test.
)
By analyzing the information on the table we can say that the policy leads to allocate resources efficiently
Q5.
The proposal is feasible when there is present value of benefits higher than its present value of cost. The present value of benefits for the environmental policy proposal of state of Pennsylvania is 4.2 billion and the present value of cost for the environmental policy proposal of state of Pennsylvania is $5.6 billion. Here the present value of cost ($5.6 billion) is greater than the present value of benefits ($4.2 billion).Therefore this environmental policy for state of Pennsylvania is not feasible.
Q6.
a. The control cost estimate for Midwest/Northeast is 380 which is higher than other regions, the cost for southeast is 2, south central is 230, Rocky mountain is 210, northwest is 140, west is 130.There is difference in incremental cost across regions, because the level of pollution varies across the region.
. Economically we can justify the PM standard. The level of standard can be fixed where it provides no or low health issues. This will help the government to reduce its expenditure on individual health of a nation.
c. Possible E
ors in Identifying and Quantifying Costs and Benefits, Subjectivity has increased towards intangible costs and benefits, Inco
ect Present Value Calculations Contribute to Misleading Analyses. all are applicable for economic analysis.
Home work 6
1. Firm in a competitive market identifies the profit-maximizing level of production by determining the level of production where marginal income equals marginal cost. Benefit would rise if the company raises Q if MR > MC. If MR 2.
The individual firm graph shows the loss and sales. The total expense is the sum of the losses and sales. The role of average variable cost determines whether this company closes down or stays in the industry. If the firm's total variable cost is less than P0 at production stage Q0, it will stay in the industry. If the total variable cost is greater than P0 at production stage the company would leave the industry at production stage Q0.
4.
A profit-maximizing monopolist selects the production level at which MR = MC and the resulting price from the consumer demand curve.
The above graph indicates the monopoly price P1 and quantity Q1.
5.
Policymakers have four options for dealing with the inefficiency of monopoly conduct. (1) They will strive to make the market more competitive by enforcing antitrust laws. (2) They have the ability to control the monopoly's rates. (3) They have the ability to transform the monopolist into a government-run corporation. (4) Instead, if the industry loss is considered minor in comparison to the unavoidable imperfections of programs, they may do little at all.
6.
The above...

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