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Consider the case of a single polluter and regulator. The regulator knows the marginal benefit of pollution abatement (equivalent to saying the regulator knows the marginal damage from pollution) but he does not know the marginal cost of pollution abatement for the firm. If the regulator proposes to implement a fee on pollution and asks the polluter to reveal the marginal cost of abatement, discuss how the polluter will respond and type of outcome that would result.
Alternatively, if the regulator proposes to give away free permits what would happen?
What if the regulator announces a coin flip will decide whether the policy will be fees or free permits.
If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions Are stocks of produ..
What is the net present value of this proposed project? If efficiency was the only objective for making the decision and we have fully accounted for all costs and benefits would you recommend the project go ahead or not?
"Since the indirect utility function, under standard assumptions, is quasi-convex in prices, randomization over equilibrium prices can be Pareto improving even if fundamentals are not stochastic." Assess this claim and its implications or compatibi..
problem 1. perfect substitutes productionthe firms technology is such that one unit of output can be produced either
a knitting mill sells about 20000 units of its product per year at an average price of 10 each. fixed costs amount to
Suppose that you are a government official in charge of your country's fiscal policy. The country maintains a flexible exchange rate system. You are asked by your country's citizens to use fiscal policy alone to expand the country's..
Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average variable costs are $50. What is the total cost of producing 1,000 units of output?
a project proposal for a new product will require a buildup of 50000 of inventory in year 0 before sales are started.
If the average shooter aims at someone, he will hit them half of the time. If the drunk aims at someone, then he will hit them only ten percent of the time. Once someone is hit, they are out of the game, with the winner being whoever is the last r..
Public Choice theorists have emphasized that there is a bias toward growth in government due to the "concentration of benefits" and the "diffusion of burdens" (or costs) from government spending. Some people, like Wilhelm Ropke.
1. roshima is researching universities where she could study for her mba degree. she is considering 3 major attributes
Government regulation is, at times, a result of market failure. The marketplace can often create efficiencies naturally through supply and demand. Unfortunately gaps of inefficiencies result in market dislocations. Thus governments believe they can r..
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