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Externalities
a) What is the difference between a positive externality and a negative extarnality?
b) Give three examples of negative externalities.
c) What divergences arise between equilibrium output and efficient output when negative externalities are present?
Recall the second price auction game. Now suppose that there are three players, 1, 2, and 3, bidding for a single object in a second price auction. All three players value the object at 10, i.e., v1 = v2 = v3 = 10. For i = 1, 2, 3, let bi denote play..
XYZ rapid prototyping (RP) software costs $20,000, lasts one year and will be expensed (i.e., written off in one year) . The cost of the upgrades will increase 10 % per year starting at the beginning of year two. How much can be spent now for an RP s..
What should be the marginal cost of a monopoly firm selling textbooks to students in a small town and is currently maximizing profit by charging a price of $48 a book and the elasticity of demand is 3/2?
Suppose that for a particular economy and period,investment was equal to 100,government expenditure was equal to 75,net taxes was fixed at 100,and consumption was given by consumption function c=25+0.8Yd where Yd is the disposable income and Y
Conduct an analysis of a recent article and provide your evaluation and outcome expectations in an articulate and informative paper that discusses: Identification of three to five macroeconomic indices. Definition and explanation of the indices, e.g...
Explain the impact the law of diminishing marginal returns has on both marginal cost and average total cost - with the aid of a diagram explain the long run average cost curve and the influences upon it.
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
Case analysis: Societe Generale (A): The Jerome Kerviel Affair Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in a real-world business issues—and makes you a decision-m..
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
The questions below are about working with the Cobb Douglas model α= 0.3 and A= 3. write the equation for output. find the MPK and MPL in terms of K and L.
In 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession level of 62 percent, How many more people would be working? By how much..
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.
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