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Suppose the following equations have been estimated for the market for hazardous waste services:
where Q is thousands of tons per week, and the dollar values are per ton. Assume there are no consumption externalities in this market.
a. State the equation that represents the negative externality in this market.
b. Algebraically solve for the competitive and socially optimal price and quantity combinations. Quantify the extent of the resource misallocation associated with the competitive solution.
c. Find the dollar value of a waste-end charge that would restore efficiency to this market
Bernie, the manager of the S& L who will make the lending decision, receives 1% of the firm's earnings. He believes that if the S& L loses money, he can walk away from his job without repercussions, although without compensation.
Suppose nominal GDP in 1999 was $100 billion and in 2001 it was $260 billion. The general price index in 1999 was 100, and in 2001 it was 180. Between 1999 and 2001, the real GDP rose by what percent.What is the unemployment rate in the United Stat..
What assumptions must hold for OLS to give an unbiased estimate of the β1 the structural effect of increasing the police budget on the murder rate
Would you expect patients and doctors to find ways around the maximum price?
if jones bids $2 and smith bids $1 they pay a total of $3, but jones gets the money, leaving him with a net gain of $98 and smith with $1. if both bid the swame amount , the $100 is split evenly between them. what is the pay off matrix for nash eq..
Urea is used as a fertilizer in cultivation of agricultural products. In Pakistan there are very few industrial plants for the production of urea. Energy shortage has badly affected the production of these industrial plants. This situation has inc..
A firm produces output according to a production function Q=F(K,L)=min {2K,4L} a. how much output is produced when K=2 and L=3 b. if the wage rate is $30 perhour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix ..
consider a hypothetical consumer richard who spends all his income on two food items pizzas and burritosa if richard
How do the effects of tariffs differ from the effects of quotas
Ahead of you is a wonderful weekend. You bought a ticket to see a professional football game. The ticket cost $50 a piece, plus you estimate a cost of $25 each for gas to the game and parking. Since the game is in the middle of the afternoon, you ..
Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. Also, the firm has constant marginal cost, MC = $3
the crockett land winery must replace its present grape-pressing equipment. the two alternatives are the quik-skwish
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