Environmental Economics

Hej, 

Jeg sidder med en hjemme opgave, som jeg absolut ikke kan komme igang med. 

Håber nogle har færdighederne til at hjælpe mig igang. Nedenstående er min information. 

In Ruritania, there exist only two firms that emit pollutant X: A and B. Their initial emissions (before any policy for pollution abatement is implemented) are, respectively, the following (measured in tons of X):

EiA= 400 and EiB= 400.

Therefore, the initial total emissions are

EiT= 800.

Ruritania’s government sets the following emission standard or emission objective (measured in tons of X):

EsT= 563.

The marginal abatement costs of A and B are, respectively, the following (measured in ruritanos, Ruritania’s currency, per ton of X):

MACA = 2 × AA and MACB = 1/2 × AB;

where AA and AB are the emissions abated by, respectively, A and B (measured in tons of X), and × is the multiplication sign

Spørgsmål:

 Which values of AA and AB minimize the total cost of achieving the standard?

Which is the minimum total cost of achieving the standard?

Which would be the total cost of achieving the standard if A and B were forced to abate the same amount of pollution (i.e., each firm must emit half of the standard)?