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Suppose that the market for tradable emissions permits by power plants has been operating efficiently for several years. An engineering firm then invents a lower cost device for pollution abatement. What happens to the equilibrium market price of a tradable permit? Why? Draw a supply and demand diagram, with a fixed supply of pollution permits, along with your answer. Has the socially optimal amount of pollution increased or decreased? Explain. Create a graph on a spreadsheet program (such as MS Excel).
Describe the opportunity cost of good 1 in terms of good 2. Find out the opportunity cost of good 1 at the point where x1=1.
Assume we refused to sell goods to any country that reduced or halted its exports to us.
A nation has a lower inflation rate than all growth. What can be said about each of the following.
Suppose that price level is flexible both upward and downward and that Fed's policy is to keep price level from either rising or falling.
Illustrate what is the logic of a firm setting and exercising the application of a mandatory retirement age? What are the pros and cons of the mandatory retirement practice from the perspective.
Comprising an evaluation of the impact of past and current fiscal policies, monetary policies, budget deficits or surpluses on the economy and on the airline industry industry.
Explain how would you use these cost also revenue estimates to determine whether a sales force increase (or possibly a decrease) is warranted.
Assume that you're a member of the Board of Governors of Federal Reserve System. The economy is experiencing a sharp decline into a recessionary phase of the business cycle.
Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.
B3 Oraganization is a manufacturing firm that uses job order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours.
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
Illustrate what would happen to general and specific training in labor markets.
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