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Many people think that liability for accidents should be based in part on negligence. For example, a negligence rule might state that if two cars collide while one driver is following traffic laws while the other is not, the second driver should bear full responsibility, while the first should bear none. Does that rule make sense from the perspective of economic efficiency? Why or why not?
One question that arose during the meeting was about how the firm's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess the profit potential using marginal analysis.
Two firms currently produce the goods q1and q2separately. Their cost functions are C(q1) =25 + q1, and C(q2) = 35 + 2q2. By merging, they can produce the two goods jointly with costs described by the cost function C(q1, q2) = 45 + q1+ q2.
Assume that by investing $2000000 in transportation system we can prevent 30 accidents per year and save another $100 on annual maintenance cost of vehicals using the system ( 2000 vehicles). The annual maintanence cost for this system is $200000.
Qs=2P-20 (supply) QD=80-2P (Demand) where Q is thousands of hours of floor reconditioning per month, and P is the price per hour. algebraically determine the market equilibrium price/output combination.
Suppose the government wants to set a ceiling price that induces the monopolist to produce the largest possible output. What price will accomplish this goal?
List the similarities, paragraph-by-paragraph, between the two reports
a representative consumer with preferences over goods x1 and x2 given by U(x1,x2)=1/2 log X1+1/2 Log X2. assume the consumer has an exogenous income of M=100. suppose initial prices are p1=3 and p2=5 calculate the optimal consumption of both goods
Write a summary (500-750 words) to discuss your data findings and the proposed solutions generated based on applying econometrics and analyzing the data.
A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.
Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches.
What do your results in the last question imply about the relationship between the number of police and the crime rate? Are you confident in these results based on the work you have done? Why or why not
Which changes to fiscal stimulus package of 2009 for $862 billion (under the bill called American Recovery and Reinvestment Act of 2009) would have a larger overall impact on AD. Explain your answer in a paragraph or two with credible logics and a..
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