How does a cap-and-trade program deliver a minimum-overall-cost allocation of abatement responsibility? How is required abatement for each firm dictated within a cap-and-trade program? What information is conveyed by the equilibrium price of the permits being traded?  How have recent cap-and-trade programs been modified to prevent market disruptions from resulting in either price spikes or extremely low prices?

Problem 3 Squeak eClean produces commercial sanitizer used to clean tanker trucks that haul liquid food products such as milk. This sanitizer a commodity like any other and at the wholesale level, there are many domestic and foreign producers that compete vigorously. Suppose you have the following estimated market demand and supply functions for the sanitizer. Qd=248.08 +2.2Y – 0.6Pc+ 1.2 Ps − 4P Qs = 10 +2P In these equations, Q measures output in gallons per month (in 1,000's), P is the price per gallon of the sanitizer, Y is annual average household income (in 1,000's), Pc is an index of commodity prices, and Ps is the average price per gallon of other types of sanitizer. After gathering the latest data, you find that average household income is $36,400, the current level of the commodity price index is 110.6, and the average price per gallon of other types of sanitizers is $48.50. a. Find the current equilibrium price and quantity in this market. b. Find the equilibrium price and…

Question 6. PDO company specializes in rapid parcel delivery. Cross sectional data from PDQ's regional "hubs" were used to estimate the demand equation for the company's services. Holding income and prices of other goods constant, the demand equation is estimated to be P 66Q 1A where p is the price per pound and Q is pounds delivered. The marginal cost of delivery is constant and equal to Le 2 per pound. a. What is the point price elasticity of demand? b. What are the profit maximizing price and quantity? c. What are the total revenue maximizing price and quantity? d. For each of the the given equations F(y,x) =0 is an implicit function y f(x) defined around the point (y 3, x 1 (i) X³-2x'y +3xy?-2ii 2x2 +4xy -y+ 67 0 If the answer is on the affirmative find by the implicit function rule and evaluate at the said pt. dx

DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the quantity of pencilstraded if the firms couldn’t cooperate?

Please see how I've responded to the 2 questions below...Do you concur are am I off track here.   What will the dollar amount of economic gain or economic loss be? The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5   What will be the price and quantity where the firm will shut down? Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units

Problem 2: Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavy construction equipment between jobs within the Midwest. No other suppliers have the equipment necessary to perform the service. The market inverse demand for these hauling services is given below. P = 4,030-4Q where P is price per trip and Q is total number of trips per year. For simplicity, also assume that neither firm has fixed costs. From company records, you are given the following variable cost function for each firm: a. C. TVC = 300 TVCB = 80QB b. Calculate the Cournot market equilibrium price-output solutions for each firm including their respective profits. d. Assume these two competitors operate as a two-firm Cournot duopoly. Find the reaction functions for each firm. Suppose Big Movers shuts down operations so that APlus now has a monopoly in this market. What is the price, quantity, and profits for APlus after this change? Summarize the results of your findings over the…

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