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The City of Rochester is thinking of expanding its airport. The expansion will increase travelers' consumer surplus by $100 and airlines' producer surplus by $200, while costing taxpayers only $50. However, the expanded airport will be much noisier. Hearing the noise would impose a $10 cost on each of the airport's 30 neighbors. Can you tell whether the expansion would improve social welfare? Why or why not?
Describe why government regulation is required, citing the major reasons for government involvement in a market economy.
Alexa likes ice cream, but dislikes yogurt. if you make her eat another gram of yogurt, she always requires two extra grams of ice cream to maintain a constant level of satisfaction. on a graph with grams of yogurt on the vertical axis.
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price
Diagram the total product, marginal product and average product functions showing the division points between stages I, II and III of the production process. How do these stages of production relate to isoquants.
What is a government budget deficit How does a federal budget deficit affect the economy Howdoes it affect the level of investment and interest rates How doesit affect the individual consumer
To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devote more to executive salary and bonus(cash compensation) or more to long term incentives.
Consider two countries, A and B, that have identical physical endowments of a key natural resource. In country A, any profits that are made from extracting that resources are subject to confiscation by the goverment
What happens to the federal funds rate when the Federal Reserve increases bank excess reserves and the money supply through open market operations What happens to the federal funds rate when the Federal Reserve decreases.
Provide some example of a goods that you purchase or market at your workplace to demonstrate why demand curve slopes downwards and why supply curve slopes upwards?
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese
What characteristics of the market make it more likely that a dealer will quote prices at random rather than stick with a single one, or will choose prices that vary with the perceived characteristics of individual customers.
The government levies an excise tax of five cents per unit sold on sellers in a competitive industry. Supply and demand curves have some elasticity with respect to value.
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