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Suppose that the state of Connecticut is attempt- ing to set a water quality standard, where water quality is measured as the percent of mercury abated (A), and the marginal social benefit (MSB) and marginal social cost (MSC) of abate- ment have been estimated as follows:MSB ¼ 40 - 0:1A MSC ¼ 36 þ 0:25A
The state's department of environmental protec- tion sets the standard at 20 percent. Is this standard set efficiently, too stringently, or too leniently? Explain briefly.
Acme Manufacturing Company is considering purchasing a maintenance contract for its new waste management systems. Acme plans to begin the contract in year 5 and continue through year 10. The cost of the contract is $11,300 per year and increasing by ..
a. Explain the decision process for a firm trying to determine the optimal quantity of a factor of production to employ. b. Explain the determination of the optimal level of pollution frrom the perspective of society.
During the 4th-quarter of 1993, real GDP in US increase at an yearly rate of over 7 %. During 1994, the economy continued to expand with modest inflation
A major employer has just added health insurance coverage for its employees. Consequently, 5,000 of your patients will pay a $30 copayment rather than the list price of $100 per visit. These patients average 2.2 visits per year.
the client currently is 46 years old with an income of about 126000 per year. his goal is to retire between ages 62 and
Calculate the price elasticities of demand for A and B at P=30, 20 and 10. How does the elasticity change as you move down the demand curve?
What is price-wage rigidity?
suppose that national income is initially at its equilibrium level when desired investment falls.we would exceptaa fall
Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. The saving rate is always equal to the investment rate.
Moral hazard and adverse selection are both examples of a) the principal-agent b)externalities in consumption c)efficiency in markets
A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling?
the bioecological model of human development. the bioecological model of human development has four basic systems.
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