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The market for paper in a particular region has the supply and demand curves: QD = 160,000 - 2,000P QS = 40,000 + 2,000P, where Q is measured in hundred-pound lots, and P is price per hundred-pound lot. There is currently no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost associated with the paper production is given by the expression: MEC = 0.0002Q.
a. Sketch a diagram showing the costs or benefits to society of allowing the market to operate in an unregulated fashion.
q.if the demand function for bananas is given by the following equationqd54000-6000pand the supply function for bananas
Suppose that an economy has the Phillips curve. What is the natural rate of unemployment? Graph the short-run and long-run relationships between inflation and unemployment.
One of the conclusions from Akerlof's paper titled "The Market for Lemons" was:
Acopalypse Now Inc. is a company that manufactures products for the New Age market (Crystal balls, Nostradum predictors, Tarot cards etc.). The firm has 10 million shares outstanding trading at $ 10 per share, no debt outstanding and a cash balance o..
If you invest $300 in a stock, borrowing $240 of the $300 at 10 percent interest, and the stock price rises by 15 percent, what is the return on your investment?
Compute the effect of a $24 billion federal income tax cut when the population's marginal propensity to consume is 96%.
Elucidate the common kinked-demand model. In the oligopolist's marginal-revenue curve, elucidate the reason for gap. In this model explain how does price rigidity in oligopoly.
We can see that aid to Africa has increased significantly over the last 40 years and that incomes in Africa have stagnated. Explain why these two facts do not constitute proof that aid is not effective in increasing incomes in Africa.
Consider a firm where production depends on two inputs—labor and capital. The firm starts using a production process that causes it to use much less labor as a fraction of its costs. How do you predict that this change will affect the firm’s elastici..
In 2011, Britney taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new website design business. Duri..
Illustrate what were you thinking about the economy in 2005 and did you ever foresee a crisis of this magnitude. What policies could you have suggested to avoid the impending economic crisis.
We use a number of contemporary technologies to enhance services that we provide for our customers. One such technology known as ____________ allows us to observationally track products and services in transport.
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