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Appalachian Coal Mining believes that it can increase labor productivity and, there-fore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC= 40P, where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR= 1,000 −10P. How much pollution reduction should Appalachian Coal Mining undertake?
q1. jane wants to buy a beautiful doll as a gift for her sisters birthday. she knows that the same product is offered
Consider an open economy in which the aggregate supply curve slopes upward in the short run. Firms in this nation do not import raw materials or any other productive inputs from abroad, but foreign residents purchase many of the nation's goods and se..
Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers. The fixed costs for the plane are $3,000 per day whether it flies or not. A) S..
Small mistakes are the stepping stones to large failures. How might this saying apply to the simple model of the firm and marginal analysis? Do you agree? In your responses
An automobile plant is capable of manufacturing 40 sport utility vechicles in 24 hours. this details the manufacturing plant's
How did restrictive mercantile policies lead to an early Industrial Revolution in Britain, when they led to several other nations collapses on Continental Europe?
Prepare a table with values from all four cases as well as compare the sensitivity of the model solution to changes in parameter values.
This year before a major earthquake adversely affected the production capacity in Nepal, the country's economy was working at its capacity level and inflation and growth rates were following their normal and stable paths at 2% and 4%, respectively. W..
You have a gross income of $386200 in 2014. Your filing status is married filing jointly. You might itemize deductions and you are allowed 5 exemptions. During the year you donated 3.3% of your gross income to charity and you have an interest-only mo..
In the monetarist model
How is it that higher tax rate can increase tax revenue in some cases, but a higher tax rate can decrease tax revenue in other cases? Relate this to the price elasticity of demand. (Excise Taxes)
How do the three equations that define general equilibrium in the AS/AS model differ (or not) when describing an economy using (i) adaptive expectations or (ii) completely credible central bank?
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