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The solution to Externalities
Suppose the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes in the market. A study has recommended that the government can correct for the externality given the effect of cigarette consumption by paying farmers not to plant tobacco used to manufacture cigarettes. Assuming that the government is correct that cigarette smoking creates external costs, evaluate where the studyâ??s recommended policies might help correct this externality. Why does the presence of externalities not reflect societyâ??s costs and benefits in the market? Why are markets considered to fail the appropriate allocation of resources that are needed in the market? When answering the question, make sure to evaluate it from the different stakeholders that are present in the market.
Elucidate what is the residual demand elasticity facing one firm at the competitive equilibrium.
Determine, how the following will affect the slope of the output demand curve, and explain your results:
What should be the role of the tax of accountant in the organization decision making process.
Utilize a various example from homes and cars. Be creative. We make these kinds of choices everyday.
Questions on Long-Run Labor Demand and Factor Substitutability, Own-price elasticity, Cross-price elasticity
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
Identify that a risk averse agent offered terms worse than actuarially fair will not choose to insure fully.
If supply decreases along a given demand curve. Fiscal policy focuses on manipulating.
write down the paper only to give a substantive feedback based on accounting concepts relative to price management
Compute point price elasticity of demand for this product.
Use the utility function to answer the questions, below: (x1, x2) = exp (√(x 1 ) + √(x 2 )-Derive the Marshallian (ordinary) demand function for good1 and 2, x i *(p,l), i =1,2 . Then derive the indirect utility function (p,l).
Elucidate the roles of government bodies which determine national fiscal policies.
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