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The private marginal benefit associated with a product’s consumption is PMB = 360 – 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good’s production is MD = 2Q. a. How many more units of this product will the free market produce than is socially optimal? b. What is the deadweight loss associated with the externality? c. To correct the externality, the government decides to impose a tax of T per unit sold. What tax T should it set to achieve the social optimum?
Which of the following are flows. If a flow, which of the five major kind(s) of capital does it increase or decrease.
When the exchange rate falls by more in the short run than it does in the long run when the money supply increases, it is called.
Suppose you could get an individual insurance to protect you against the unauthorized access to your laptop. The chance that someone will gain access to your machine is 0.10. In that case you will incur a loss of $200 (valuable information becomes av..
What are the main factors that determine exchange rates? Why are exchange rates so volatile?
Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund ..
An increase in autonomous investment will cause equilibrium output to increase
If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?
Assume the demand function for good X is Qd = 600 - 2PX + 7PR, illustrate what is the demand function for good x. Which investment produces a $40 daily profit for a game shop earning $2 profit from every game sold.
Explicate how firms decide on where to produce depending on the marginal product and average product.
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
The cost to a cinema owner of letting someone see a movie for free is
over the subsequent months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of increasing prices?
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