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The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another. Why might the private market not reach the socially optimal level of traffic on the road without the help of government?
A company earns an annual profit of $50 million. There are 100 million share of stock outstanding. People expect a 9% return on stock. What is a share of stock in this company worth?
What is the solution of the Solow model for consumption per person in the steady state, c ∗ = C ∗/L∗ ? How does each parameter in the solution affect c ∗ , and why?
The ratio of total productivity to the total quantity of a variable input being used in production is. In the long run all production inputs are variable. Decreasing returns to scale prevail when output increases by a proportion that is smaller than ..
part 1 truefalse questions. explain your answer fully.1. the risk treatment in the bene.t-cost analysis assumes risk
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
Economic agents make decisions in particular models. These models do not need to be related to financial contexts, and economics can be used to describe how agents will act in any other field in which humans act. As an example, how would economic pri..
q. airways express has an evening flight from los angeles to new york with an average of 80 passengers and a return
Research, identify and discuss some of the environmental issues faced by business and society as well as at least two strategic approaches organizations are using to respond to these issues.
Suppose an economic agent has a utility function U = Ln (R). Assume R is the return on investment and utility is the natural log of investment. If the investment is highly successful then the agent earns $10000. Derive the expected value of the inves..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price $2/unit of food. draw the budget constraint for the individual with the composite good on the y-axis and food on the x-axis..
Are monopolies and oligopolies always bad for society? Provide real world examples of where this may be the case to strengthen your position. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society..
Evaluate the arguments of the two partners. For full points please also explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.
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