Use the following tables 1 Production Quantity 1 2 3 4 5 6 7 MSB=MPB $60...

     

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Use the following tables 1 Production Quantity 1 2 3 4 5 6 7 MSB=MPB $60 55 50 45 40 35 30 MPC $15 25 35 45 55 65 75 MSC $45 55 65 75 85 95 105 Tradable Pollution Permit Firm's endowment of Scenarios Permits Scenario A Scenario B Scenario C Scenario D 1 permit 2 permits 3 permits 4 permits Market Price per Permit $40 30 20 10 What is the profit-maximizing production level if there is no regulation? What is the optimal tax? What permit scenario has the highest profit for the firm? Use the following tables 1 Production Quantity 1 2 3 4 5 6 7 MSB=MPB $60 55 50 45 40 35 30 MPC $15 25 35 45 55 65 75 MSC $45 55 65 75 85 95 105 Tradable Pollution Permit Firm's endowment of Scenarios Permits Scenario A Scenario B Scenario C Scenario D 1 permit 2 permits 3 permits 4 permits Market Price per Permit $40 30 20 10 What is the profit-maximizing production level if there is no regulation? What is the optimal tax? What permit scenario has the highest profit for the firm?

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To answer these questions we need to analyze the information provided in the tables 1 What is the profitmaximizing production level if there is no regulation In the absence of regulation a firm will p... View the full answer