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Quiz-env

Total questions: 10

Worksheet time: 34mins

Name
Class
Date
1.

Let MAC = 4 – E. In which case the area of the TAC is maximum?

a)

E=0

b)

E=1

c)

E=2

d)

E=3

e)

E=4

2.

Assume that (P)_t=8-Q_t, MC=3, r=0.1 and λ=3. Also assume that the marginal cost of renewable resource is 6. Find the first period price and chock quantity.

a)

6 and 2

b)

8 and 2

c)

1 and 2

d)

6 and 4

e)

8 and 4

3.

Assume that fishery has property right to use the river. Let MAC=300-5E and MD=E. Find the max value of net gain for chemical company

a)

6428

b)

4286

c)

8462

d)

8426

e)

2648

4.

Assume that chemical company has property right to use the river. Let MAC=70-2E, MD=3E. Find the net gain for chemical company at the social efficient point.

a)

441

b)

144

c)

114

d)

401

e)

104

5.

Let MD=2E and MAC=150-E. When the value of net social gain is maximum?

a)

Standard=30

b)

Standard=50

c)

Standard=20

d)

Standard=75

e)

Standard=25

6.

Let MAC1=60-5E1, MAC2=12-E2 and emission standard is 6 tons. Apply cost-effective individual standard and find the TAC for second firm

a)

50

b)

100

c)

10

d)

30

e)

12

7.

Let MAC1=60-5E1, MAC2=12-E2 and emission standard is 6 tons. Apply uniform standard and find the TAC for first firm

a)

90

b)

60

c)

12

d)

6

e)

5

8.

Let MD=5E and MAC=160-5E. If standard is 20 tons, calculate the net social gain

a)

1200

b)

2100

c)

1002

d)

2001

e)

2010

9.

Let MD=6E and MAC=160-2E. If standard is 20 tons, calculate the net social gain

a)

14400

b)

10440

c)

44100

d)

40140

e)

10044

10.

Let MD=6E and MAC=160-4E. If standard is 20 tons, calculate TD

a)

1200

b)

160

c)

120

d)

20

e)

6