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Lower Abatement Cost and Permit Prices. Suppose new technology decreases the cost of abating pollution by half. Depict graphically the implications of the decrease in abatement cost on the equilibrium price of marketable permits. Use Figure 31.5 on page 672 as a starting point, with an initial permit price of $21 (point b). Whats the new equilibrium price?
Consider the production function f(L;K) = L + K. a. Suppose K is fixed at 2. Find algebraic expressions for the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L).
A local bank offers a customer a 2-year car loan of $10,000 as follows: Money to pay for car : $10,000 Two years' interest at 7% : 2 x 0.07 x 10,000 : $1400 (11,400 total) 24 monthly payments : 11400 / 24 = $475.00
A television station is considering the sale of promotional DVDs. I can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1,200.00 plus $2.00 for each DVDs; supplier B has no set-up fee and will ch..
Some people argue that the MINIMUM WAGE by pricing many unskilledteenagers out of the labor market, cause them to turn to sellingdrugs. After all, if a person can't get a job legally, they willget one illegally. The alternative is to starve.
What is an output gap in this hypothetical economy? Based on your estimate of the output gap, would you expect the unemployment level to be higher or lower than usual?
Qs= 3p Qd= 100-2p a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax What will be the price received by the seller What quantity is sold Show your calculation.
Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an a..
Does total investment (public and private) increase or decrease in this case?
Compared to last year, more television sets are being bought while the selling price has fallen. This could have caused by:
Karla wants to grow spinach. 1 pound of Fertilizer(F) produces 20 spinach or 1 pound of Manure(M) produces 30 spinach. They are perfect substitutes. So we know Q=20F+30M Now Karla wants to produce 300 spinach at the least possible cost.
an economy is faced by the exhaustion of an important natural resource at a time when it is introducing improved technology.using a diagram how these events will affect the economy production possibility curve
Describe the role that networking can play in your professional life.
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