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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
Suppose me also my roommate started a bagel delivery service on campus. List some of our fixed costs also express why they are fixed.
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
Derive total, average and marginal revenue schedules. Explain why your answer to part is an example of marginal analysis and optimizing behaviour in general.
Describe pressures that currency would face due to increasing oil prices. Will this response by central bank increase or decrease foreign reserves.
Illustrate what is the basic objective of monetary policy. What are the major strengths of monetary policy.
Converse alternatives to GDP as a measure of economic benefits in a current economy.
Production When you have completed your study of this chapter, you will be able to 1 2 3 4 Explain how economists measure a firms cost of production and profit. Explain relationship between a firm output and labour employed in short run.
llustrate what is maximum amount it would be worth to shareholders to elicit high CEO effort all time rather than low CEO effort all time.
Based on your answers in a also b, how can you reconcile the president's statement with economics. Can you suggest how his statement could be modified to be consistent with the IS-LM model.
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Extend this comparison by choosing a different point on this period's PPF and discuss whether that combination leads to more or less growth over the next period.
If the market is made up of 100 individuals with demand curves identical to Mr. Smith's, Illustrate what will be the point also arc elasticity for the conditions specified in parts a also b
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