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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
1.What two policies could you use to reduce the total amount of emissions?
2.Why do you think they each would work?
3.What would the benefits of each action be (besides emissions reduction)?
4.What would the costs of each action be?
5.How would you decide what was the best level of emission reduction?
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram. The state legislature is concerned that the current price does not give the physiotherap..
Analyzing many indicators of the macroeconomic situations in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment.
Suppose that you will receive $2000 a year in years 1 thru 5, $3000 a year in years 6 thru 8, and $4000 in year 9 with all cash flows to be received at the end of a year.
Consider the following interaction between two entrepreneurs (players 1 and 2) who are working on a joint project, and a venture capitalist (player 3) who is a potential investor in the project. First, player 1 decides whether to devote high or lo..
Explain how have society and workplaces changed and what are strategic human resources management implications of these changes for organizations?
Determine which of the following is not one of the basic preconditions for economic growth?
Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality. If there is an externality, does it seem likely that private markets will arise tha..
Explain the differences among the long run and short run aggregate supply curves. Consider these differences and explain how an expansionary gap occurs.
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
"Most of the firms spend considerable amounts of money on advertisement". Explain advertising elasticity of demand and its practical applications in this context.
The nearest rival movie theater, the Cedar Bluff Twin, is 35 miles away in Pocatello. Thus QuadPlex Cinema possesses a degree of market power. Despite having market power, QuadPlex Cinema is currently suffering losses.
Suppose that the two years have elapsed since you purchased the security, and you hve recieved the first two payments of $600 each. Now suppose the market interest rate suddenly jumps to 10%. How much would another investor be willing to pay for y..
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