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Explain the two causes of market failures. Given their definitions, could a market be affected by both types of market failures simultaneously? What divergences arise between equilibrium output and efficient output when (a) negative externalities and (b) positive externalities are present? How might government correct these divergences? Cite an example (other than the text examples) of an external cost and an external benefit
What level of output will these firms produce in the short run and are these firms operating under perfect or imperfect competition?
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial a..
The employees of Abs "R" Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company.
Constrained optimisation model
Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice.
Estimate the demand function
For each of following cost-output relationships, explain the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions
Have your students take a poll: Students should have survey five friends to get their responses to the question, "if the tax on beer were increased, would it result in you buying fewer cigarettes" 2) You have six hours to study for two exams tomo..
According to scientific nutritional studies in most nations, income of $1 a day does not provide sufficient food, shelter and clothing to live. Under these situations the medical risk of death is high.
Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are:
Suppose the price of c increases to 2, while income remains constant and what happens to the consumption of c and h? Are c and h substitute goods, complementary goods, or neither?
Identify the stocking rate that you would suggest to a risk averse farmer and explain why you would recommend this stocking rate.
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