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In the absence of regulation, firm 1 would emit 15 and firm 2 would emit 20. The firms have the following marginal control costs where q1 and q2 are the amount of emissions reduced by each firm.
MC1=0.4q1
MC2=0.5q2
The EPA has determined that emissions should be reduced by 9. What tax level would achieve this goal? How much abatement would be done by each firm?
If instead an emission permit system was established, how much would each firm spend on permits if 26 emission allowances were auctioned off? How much would they spend in total?
If the 26 permits were split evenly between the 2 firms, how much would each firm ultimately spend? How much would they spend in total?
Use the supply and demand for Reserves to show what happens to the Federal Funds Rate when The Fed decreases the money supply. Assume that ior
1. what was real gdp for 2009? a.what does gdp tell us? b.how did gdp change from 2008? c.what caused these changes?2.
Suppose the Clean springs water company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean springs' profit maximizing levels of output, price, and profit
Explain the different outcomes between perfect competition and monopoly (“regular” monopoly). Use a single graph to illustrate this difference.
Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
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Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
analyze the economic and political risk factors involved in the business scenario write a minimum 1 page paper in the
Determine what is the cumulative change in concentration of iodide ion at each of these four times?
Suppose as your company's lobbyist, what would you like to see done through Federal government that would be of help to your company? This could be what government could do or what they could stop doing this.
Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats
What is the invisible hand principle Does it indicate that self-interset behavior within markets will result in actions that are beneficial to others What conditions are necessary for the invisible hand to work well? Why are these conditions impor..
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