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1. Suppose that the only way to reduce pollution from paper production is to reduce output. The government imposes a tax equal to the marginal harm from the pollution on the monopoly producer. Show that the tax may or may not raise welfare?
2. Do publishers sell the socially optimal number of managerial economics textbooks? Discuss in terms of public goods, rivalry, and exclusion.
3. You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation that the other will deal with the mess. Explain how this examples illustrates the problem with public goods and free riding?
A firm has two variable factors and a production function y = (2x1 + 4x2) 1/2. Without taking any derivatives, determine the technical rate of substitution between x1 and x2.
Unemployment occurs even during periods when the economy is growing. An increase in wages will shift the supply curve up and to the left. A decrease in population would shift the demand curve to the left. An increase in demand will cause the equilibr..
Provide examples of different tools businesses use to identify the elasticity of their different customers. Also elucidate how the financial aid department determines student elasticity.
Assume that the price elasticity of demand is -2 for a certain firm's product. if the firm raises price so, the firm managers can expect total revenue to: A/ decrease B/ increase C/ remain constant D/ either increase or remain constant depending upon..
You need to borrow $10,000 and the following alternatives are available:-Pay $2983 at the end of each year for 5 years, starting at the end of the first year (5 payments total) On the basis of interest rate, what alternative is superior? Please draw ..
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation price – the v..
Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..
One of the principles of social psychology holds that people's actual behaviors within a cultural context sometimes vary significantly from their knowledge of that culture.
q.assume a calculator virus disables the nations automatic teller machines making withdrawals from bank accounts less
Write a thorough analysis of unemployment, defining the various types of unemployment, full employment, and the natural rate of unemployment. Describe the impact of unemployment on the economy and your solutions to lower unemployment. Remember to cit..
During the period of time that a local university takes phone-in registrations, calls come in at the rate of one every two minutes.
The price-quantity combination found where the supply and demand curves intersect is a unique combination that is efficient because
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