Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 7, Problem 3CQQ
To determine
Natural resources and growth.
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"Whether the regulator sells or gives away tradeable emission
permits free of charge, the quantities of emissions produced by
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Assume that there are n identical profit-maximising firms where
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0 and e denotes emissions. Individual emissions summed over
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D(E). Show that the regulator achieves the optimal level of total
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Case (i) the firm purchases all permits;
Case (ii) the firm receives all permits free; and
Page 3 of 5
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Case (iii) the firm purchases a portion of its permits and receives
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compare and/or contrast the two plays we've been reading, Antigone and A Doll's House.
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Brief Principles of Macroeconomics (MindTap Course List)
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