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Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to stop the farm's pollution.
Which of the following types of private solutions to the externality of pollution has occurred in this case?
(Contacts, moral codes and social sanctions, integration of different types of businesses through merger or acquisition)
It’s important to note that sometimes private solutions to externalities do not work. For example, this occurs when the number of parties involved is so large that it makes...
(government action the only viable solution, the market failure from the externality unimportant, coordinating negotiations among all of the parties too costly)
Explain how does price elasticity affect the price-quantity combination and segment of the demand curve that the monopolist would prefer for price and output.
As we become more aware of our impact on the environment, citizens and legislators are faced with decisions which impact local, state, and national economies. For example, government restrictions on construction due to effects on endangered species o..
What would happen to the demand curve in each of the following cases:
The income statement that classifies costs by their behavior is called the:
Breaking news reports claim that household incomes are strong and growing. Assuming all other applicable indicators remain the same, how would you expect this to impact the position of the Demand Curve in the Product Market? You read an article that ..
A number of developing countries have accumulated a considerable volume of external debt. In this question, we examine the impact on the terms of trade of the developing countries that would result from repaying part of this debt. What is the effect ..
The median household income in Louisiana is approximately $52,000 per year, while the median household income in Massachusetts is about $79,000. However, suppose the growth rate of per capita real GDP in Louisiana is higher than in Massachusetts (3% ..
Companies want to expand their business and improve their sales and profits. Instead of building manufacturing plants and installing new machineries, companies look to buy other companies and integrate them into their current business.They have $22 m..
Look at the table Coffee Shops. If the price of coffee is $1.75, show how total producer surplus decreases at any number of cups that differs from the equilibrium number found in the previous question.
Suppose that for a particular economy and period,investment was equal to 100,government expenditure was equal to 75,net taxes was fixed at 100,and consumption was given by consumption function c=25+0.8Yd where Yd is the disposable income and Y
Use only IMF or World Bank data for international comparisons. What is U.S. nominal GDP at the end of 2014 (4th quarter)? What is U.S. real GDP at the end of 2014 (4th quarter)? What is the base year used in calculating U.S. real GDP? Since 1998, in ..
Discuss the two types of inflation. Explain the differences and give an example. Explain what, if anything can be done to avoid either type?
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