Extract C states: ‘To curb greenhouse gas emissions, the regional authority has enforced an emissions surcharge on nitrogen oxide (NOxNO_xNOx) releases from heavy industry. During the peak production winter months, firms are charged an environmental levy of £25 for each tonne of NOxNO_xNOx emitted. However, to protect business competitiveness, the levy is capped at a maximum of 8 tonnes per production facility per month, even if their emissions are higher. During the low-demand summer months, firms pay 40% less.’
Calculate the total emissions surcharge paid by a manufacturer operating 6 production facilities, each emitting 15 tonnes of NOxNO_xNOx during a summer month.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.