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(External Costs with Variable Technology) Think of an industry that pollutes water and has access to variable technology for reducing that pollution. Graphically illustrate and explain the impact of each of the following, other things constant, on the optimal level of water quality:
a. New evidence is discovered about a greater risk of cancer from water pollution.
b. The cost of pollution-control equipment increases.
c. A technological improvement reduces the cost of pollution control.
Neglect other concerns, like closing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.
If the nominal money supply is rs.200 and the price level is 1, (i) is the economy operating with inflationary or deflationary condition. (ii) Illustrate at what price level will there be simultaneous equilibrium in all markets.
International trade has pros and cons. Economists generally supports free trade. International trade has played a significant part in promoting economic development and technology transfer among countries. There are also various arguments in favour o..
q.based on the production function parameter estimates reporteda. which industry or industries appears to exhibit
You are to consider pricing separately, pure bundling, and mixed bundling. Without computations, which pricing policy from above would you recommend. Please explain why.
Elucidate how many units does each industry produce, elucidate how many industries will exist in this marketplace.
Sketch the firm's isoquant and isocost lines and show its current equilibrium in the use of labor and machines when producing 200 gizmos per month.
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
If David also Ellen live in rent-controlled apartments, illustrate what is the equilibrium cost for the non-rent-controlled apartments.
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?
the short-run equilibrium values; and vi. the long-run equilibrium values. State in words what happens to prices and output in the short run and the long run.
q.suppose you elasticity of demand for your parking lot spaces are -0.5 and price is 20 per day. if your mc is zero
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