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For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2.
Under these situations find:
Level of output x, Producer surplus and net damages
A regulator imposes a unit Pigovian tax on pollution at the level t=2 per unit.
Same as (3), but the government returns to tax revenues collected to the consumers
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
With Australia going through a long-lasting drought in the first decade of the 21st century, serious concerns were raised about the possibility of running out of water.
In the country of Growlandia the labor force grows by 3% per annum, while the capital stock grows by 4% per annum. Suppose 40% of national income goes to labor. Suppose the country’s actual rate of growth is 5% per annum. Calculate the value of the r..
In theory, “Giffen good” is a good for which the demand curve is upward-sloping, which violates the law of demand. Please provide at least one example as a Giffen good and explain briefly why the demand curve is upward-sloping.
government official proposed which gasoline price controls be imposed to protect the poor from rising gasoline prices.
You deposit $1,000 into an account at the end of each year starting at the end of year 1. This account earns 7% interest compounded annually. How much money will you have at the end of 8 years? Note: you will make the final deposit into the account a..
1. you are a commuter student at a local university. because of the steep rise in gasoline prices your parents decide
What are the advantages and disadvantages of each method. What do you suppose led each company to make their choices.
Concerning a country's business cycle, which of the following situations is commonly associated with large or growing current account deficits?
A new OSHA rule requires that welders be given 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using production theory, explain what will happen to the capital labor ratio in both the short run (when capital is fixed) and..
To determine the cost of using these people in the army what information do you need.
Discuss the social and economic effects of colonization? How did it contribute the “Price revolution”?
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