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A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B are 2q.
What is the optimal level of pollution? What is the optimal level of pollution abatement?
(Functions of Money) "If an economy had only two goods (both nondurable), there would be no need for money because exchange would always be between those two goods." What important function of money does this statement disregard?
The loan office of the bank has just called Ms. Firth to mention another financing possibility-the graduated payment mortgage. Terms, interest rates, and fees are the same as a normal mortgage. However, by lowering the payments in the early years,..
Neolithic Revolution
Explain how a firm values the contribution of workers to its profitability. Would a profit-maximizing competitive firm ever stop increasing employment as long as marginal product is rising?
How should the firm allocate production?—How much should Factory #1 produce and how much should factory #2 produce?
Assuming that the merger faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
z-best pizza recently decided to raise its regular price on large pizzas from9 to 12 following increases in costs of
What is the free trade level of rice consumption in Japan, how much rice do domestic farmers produce in Japan
The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is the Federal Reserve System (also referred to as the Federal Reserve,..
network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users..
Analyze the characteristics of each of these goods. Focus on the characteristics that define each good as public or private.
In which of these markets would the firms be facing the least elastic demand curve?
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