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Suppose demand for a product Q = 1,200 - 4P and supply is Q = -200 +2P. Furthermore, suppose that the marginal external damage of this product is $8 per unit. How many more units of this product will the free market produce than is socially optimal? Calculate the dead weight loss associated with the externality.
Discuss the role and the effect of reputation on cooperative behavior by selfish individuals. Discuss the biological reason for cooperative behavior with relatives.
Two banks (Franklin and Lincoln) compete for customers in the growing city of Logantown. Both banks are considering opening a branch office in one of three new neighborhoods: Is there a pure strategy for this game? If so, what is it? If not, identify..
explain why the tax would be placed on gasoline rather than, say yachts. Illustrate what might be the long run effect of raising the price of gas.
newspaper reports frequently suggest that the administration regardless of who is president wants the fed to lower
find marginal cost of last unit produced. What is firms percentage mark-up of price over marginal cost.
An increase in the aggregate demand for goods and services has a larger impact on output ________ and a larger impact on the price level ________.
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
You operate a small but popular and profitable restaurant/bar in a college town. There are several other restaurants and bars nearby. You have conducted a market research study and discovered that the price elasticity of demand for local residents is..
Which of the following trends favor a more labor-intensive method of production? A growing number of desperately unemployed people as the result of rural-urban migration. A limit to the level that wages can fall (subsistence)
If a company wants a 20% profit, what is the minimum they will bid on the project? Given: Each modular home to be installed is $100,000. The installation is to be done by one crew over 4 years (paid $10/hour with 5% increase/year) with a learning cur..
Natasha has been told that if she reduces the thermostat setting on the heating system at her home by 1 degree, she will be able to reduce her present annual energy consumption of 5,000 kWh of energy by 20%. In doing so, she will be able to save as m..
Illustrate what are the firms ATC per unit at these three levels of production. If every firm in this industry has the similar cost structure, is the industry in long-run competitive equilibrium.
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