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Electricity is often generated using coal fired plants. Unfortunately, coal burning produces SO2, which causes acid rain. Consider two countries that border each other to answer the following question. Country A’s SO2 emissions are known to negatively affect neighboring Country B through acid rain. However in private decision making, Country A does not acknowledge this and privately chooses an optimal level of nationwide abatement.
a) Assuming that society is comprised of these two countries, show this problem on a MAC/MD diagram. Show MAC, MD of Country A, MD of Country B, and aggregate MD curves.
b) On your graph, show the net gain to society that would be achieved by solving the problem.
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic.
Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is..
Additional projected costs are $1,000 for insurance and $3.20 per unit for materials and supplies. Their fruit smoothies would be priced at $5 per unit. A.) What is the accounting cost function for this business
Analyze a two-period model for the market of computers in which two firms operate. Firm 1 only produces in period 1 and is endowed with an old technology providing a quality level vO to consumers.
Explain how a bandwagon effect might speed up the rate at which DVD players are adopted by consumers. Do likewise for the case of cable television subscriptions.
A firm's cost function is TCi = a + bqi + c qi2, where a, b and c are positive constants a. Find its marginal cost function, and show that MC is increasing for all q. b. Find its average total cost function. Now, prove that at the quantity that minim..
Include in milestones areas identified as risk, as well as where project might be falling behind vs on track. Use colour coding of milestone to indicate this with a legend depicting meaning of colours.
Mr. Gonzalez wishes to sell a bond that has a face value of $1000. The bond bears an interest rate of 8%, with bond interest’s payable semi annually. Four years ago, $920 was paid for the bond. At least a 9% return (yield) on the investment is desire..
q1. think about the electoral competition model with three candidates. extend the model to incorporate that candidates
Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?
In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from one mil..
Divide the gain or loss by the number of years to maturity to calculate the average annual gain/loss. Calculate the yield to maturity on this bond.
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