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Assume that the marker for tradable emissions permits by power plants has been operating efficiently for several years. An engineering firm then invents a lower cost device for pollution abatement. What happens to the equilibrium market price of a tradable permit? Why? Draw a supply and demand diagram, with a fixed supply of pollution permits, along with your answer. Has the socially optimal amount of pollution increased or decreased? Explain. Create a graph on a spreadsheet program (such as MS Excel)
Explain briefly why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation.
Determine whether the Justice Department would challenge a merger between two firms in an industry with 10 equal-sized firms.
If the variable is almost normally distributed does that mean you use common distribution.
Explain why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug.
Suppose current interest rate is 5% and you pay $250 for a bond. How much should bond pay you in one year.
When Michael got a pay raise and began to earn $6,000 per month, his demand shifted outward to Q = 20 – 0.25P. Given this information, find Michael’s income elasticity (EI) for filets.
Calculate the range, variance, and standard deviation for this data series. Which measure does the best job of describing the dispersion in this variable.
Illustrate what is the impact of this sale on GDP for 2002. Assume no realtor is involved in the sale.
Why the adverse effect on output is larger when the Fed is decreasing money supply than holding it constant.
The numbers on this spectrum represent the number of voters lying to the left of the number.
Illustrate what entity establishes a cost ceiling and does it require government sanction for violators. Will it result in a surplus or a shortage.
How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
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