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A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blown Away Manufacturing regularly sold blowers for $100. After the tax is in place, the consumer price for leaf blowers rises to $105. a. Describe the impact of the tax on the number of leaf blowers sold. b. What is the socially optimal price to the consumer? c. What is the private market price? d. What net price is Blown Away receiving after it pays the tax?
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and ex..
A bank has issued a six-month, $2 million negotiable CD with a 0.52 percent quoted annual interest rate. Calculate the bond equivalent yield and the EAR on the CD. How much will the negotiable CD holder receive a maturity?
What is the difference between a production function and an quant. Explain the law of variable proportions with the help of quant.
If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. Illustrate what is the variance of the returns..
Illustrate what is the new level of gross national debti. If 100 percent of the deficit is financed by the sale of securities to federal agencies.
Illustrate what are they, and what impacts do they have on the outcomes of Keynesian countercyclical policies.
while average labor productivity increases at the same rate as it did during 1960-2009. Under this scenario, what would be the net change in real GDP per person between 2009 and 2058?
What is the outcome of the case and whether you agree with the final decision and why?
Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.
q1. in recent decades americans have increased their purchase of stocks of foreign base companies. the americans who
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
Assume that inflation is currently 4% but the Fed’s inflation target is 2%.
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