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What divergences arise between equilibrium output and efficient output when spillover benefits and costs are present? Provide some "real-life" occurrences where both a positive and negative externality took place. What was the role of outside market forces in these situations?
Assume the government mandates that all firms over 50 employees must provide an increased level of health care benefits. Could you please describe what effect this will have on the aggregate supply curve.
Next, consider the follwoing three scenarios and to describe the likely effects of an activist policy in both the short and long run.
Explain how is their gain or loss determined. What is the maximum loss to a purchaser of a futures contract.
In a short run situation in which quantity demanded equals quantity supplied in a competitive industry, with price greater than the average cost of the typical firm,
Assume the marketplace for milk. For each of the following events, state whether it affects supply or demand (or both, or neither), which direction supply/demand shifts.
A company in a purely competitive industry is currently producing 1000 units a day at a total cost of $450. If the firm produced 800 units per day, its total cost would be $300.
Explain how changing interest rates will affect investment spending, equilibrium output, and prices. Also, could do a brief discussion of the money multiplier and how it relates to the Fed's activities.
Elucidate the academic curriculum and dicuss the challeges confronted by scholars of the following areas of specialisation.
If supply decreases along a given demand curve. Fiscal policy focuses on manipulating.
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
As consumer surplus is closely related to the supply curve for a product, producer surplus is closely related to the demand curve for a product.
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
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