Author Question: Under a transferable emissions permit system with n possible polluters, the government enforces the ... (Read 58 times)

Beheh · **on:** Jul 1, 2018

Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by

A) setting a different fee for each firm so that each firm chooses to emit X/n units.
B) setting the same fee for each firm so that each is forced to emit X/n units.
C) setting a different standard for each firm, with X/n being the average.
D) setting the same standard for each firm at X/n.
E) issuing X permits.

Question 2

Suppose the local market for legal services has an upward sloping supply curve, PL = 150 + 0.0001QL where PL is the price of legal services and QL is the number of hours of legal services.

If the equilibrium price of legal services is 250 per hour, what is the aggregate economic rent earned by lawyers in this market? A) 50,000
B) 1,000,000
C) 50,000,000
D) 100,000,000