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a. Consider a competitive market supple and demand model. If there are no externalities, explain why economists describe the competitive equilibrium an efficient?
b. Suppose instead that all of the firms in this market vent an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this new outcome efficient? explain with a diagram
c. Do these firms have an incentive to reduce their pollution? Explain with diagram.
d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "solve" the problem of pollution.
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250.
q.1 nbspbriefly define the following termsa.nbspnbspnbsp unemployment rate be sure to give the definition of the
Suppose a small city dry-cleaning market, which is monopolistically competitive. Currently, the typical dry-cleaner is charging $5 an product.
Explain the process of revenue at NSU, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment.
Describe the business research and its purpose. What did the researchers conclude as a result of their research.
A Mercedes Benz will cost $40,000 in 3 years. If I can get 1.5% per quarter interest how much do I need to put in the bank today to have $40,000 in 3 years
Suppose that you bought an asset that pays 6% nominal interest rate, you expect that inflation rate to be 1%, and the actual inflation is 4%. Calculate the expected real interest rate and the actual real interest rate.
Ross Perot added his memorable “insight” to the debate over the North American Free Trade Agreement (NAFTA) when he warned that passage of NAFTA would create a “giant sucking sound” as U. S. employers shipped jobs to Mexico.
If you were having a conversation with a Keynesian and a Classical economist, and the conversation turned to why the economy is experiencing high unemployment and what the government should do about it
Suppose you could borrow money to buy a new machine for your business, which cost $4,000. You have estimated that this new machine will increase your revenues by $4,500. If the interest rate is 12 percent should you borrow the money to buy this machi..
Which of the following changes to fiscal stimulus package of 2009 for $862 billion (under the bill called American Recovery and Reinvestment Act of 2009) would have a larger overall impact on AD Explain your answer in a paragraph or two with credi..
Create an educated guess as to illustrtae you expect to happen to short-term.
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