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Optimal Pollution Abatement. Suppose the marginal benefit of pollution abatement is constant at $12 per unit. The marginal cost of abatement is $2 for the first unit abated and increases by $2 for each additional unit, to $4 for the second unit, $6 for the third unit, and so on. Draw the marginal-benefit and marginal-cost curves and show the optimum level of pollution abatement. (Related to Application 1 on page 663.)
According to an article in The Wall Street Journal, side-impact crashes are among the deadliest, accounting for nearly 10,000 deaths per year. Child safety concerns have kept auto manufacturers from making side-impact airbags
A company's marketing dept. obtained information from 10 of the firm's outlets. The information consists of the qty. and price of the products sold at each outlet from the distribution center.
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to put a tax on it to reduce smoking by 20%, what should be the size of the tax per pact of cigare..
Joe quit his job as a salesman where he made $35,000 per year to start his own t-shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part time help.
Jehello has defaulted on its bank loans and the bank is suing you, saying that the financial statements presented last year were false and misleading.
Where would they fly? Would it be enough to not want to drive to SLC, and how much would you be willing to pay?
an engineering freshman wants to purchase a laptop computer for use during the 4 frac12 years that she plans to study
Describe the differences between each categorized cost and how it plays a role in the overall cost of the operation
The production function is given by W=F(L)=8*L^.5 and the marginal productivity MPL=4/L^.5. If widgets sell for $10, the price of labor is $8/hour, and there is a fixed cost of $25. What is the cost function C(W) for this production technology.
A study of costs of electricity generation for a sample of 56 British firms in the 1946-1947 yielded the following long-run cost function: AVC = 1.24 +.0033Q + .0000029Q2 - .000046QZ - .026Z + .00018Z2 Where AVC = average variable cost (i.e., work..
Citigroup has a £10 million deposit in the U.K. that they wish to convert to Swiss francs (Sfr). UBS is willing to switch the pounds to francs at a rate of 2.32 Sfrs per pound. Deutsche Bank will accept £0.43 per franc.
Explain the economics of the substitution of ATMs for human tellers. Some banks are beginning to assess transaction fees when customers use human tellers rather than ATMs. What are these banks trying to accomplish?
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