A-Level经济例题解析及练习

今日知识点：

Externality and Government Intervention

例题

Externality and Government Intervention

Acme and US Electric run coal-burning power plants.  Each emits 40 tons of sulphur dioxide per month, total emissions = 80 tons/month.   

Goal:  Reduce SO2 emissions 25%, to 60 tons/month

Cost of reducing emissions: $100/ton for Acme, $200/ton for USE

Policy option 1:  Regulation

Every firm must cut its emissions 25% (10 tons).

Compute the cost to each firm and total cost of achieving goal using this policy. 

解析

Cost to Acme:  (10 tons) x ($100/ton) = $1000

Cost to USE:  (10 tons) x (