Environmental Regulation Simulation
You will be taxed for each unit of emissions produced. You have two options:
You should choose the option that results in the maximization of your profits.
A roll of the dice will determine the initial emissions tax. The per unit emissions tax:
T= die + .5
For example, if the die roll is 6 the tax is 6.5. Trial and error will be used to determine the emissions tax that reduces emissions to the optimal amount.