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Ringo loves playing rock ‘n' roll music at high volume. Luciano loves opera and hates rock ‘n' roll. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls.
a. What is the externality here?
b. What command-and-control policy might the landlord impose? Could such a policy lead to an inefficient outcome?
c. Suppose the landlord lets the tenants do what- ever they want. According to the Coase theorem, how might Ringo and Luciano reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?
William J. Bryan is the general manager of an electrical equipment plant. He must decide whether to install a number of assembly robots in his plant. This investment would be risky because both management and the workforce have no real experience ..
The aspects of your decision-making process fit the description of a rational choice.Did you consider costs and benefits.
Consider a macroeconomy was initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram or model of the economy, graphically illustrate and discuss the short-run and long-run effects of the following events upon..
Make supply and demand diagrams for market A for each of the following. Use these diagrams to determine how each of following changes in demand or supply affect equilibrium price & equilibrium quantity.
Recommend two to three best practices for leveraging information regarding exchange rates to maximize their profitability. Provide examples to support your response. Discuss how the current economic environment affects the exchange rate between the..
1. You are given the following information about the market for motorcycles.
Jones on the other hand regards ham and cheese as perfect substitutes-she is always willing to trade 3 slices of ham for 4 slices of cheese, and her utility function is given by Uj+4h+3c. Total endowments are 100 slices of ham and 200 slices of ch..
the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's. Also..
The demand schedule (or demand function or curve) for a good shows the total quantities (Q) that buyers are willing and able to buy at various prices (P) in some period of time. For example, here is a demand function illustrating the very special ..
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
Suppose you purchased 5 apples and 3 oranges last week. Apples cost $0.75 per apple, and oranges were $1.00 per orange. How much did you spend on fruit?
Assume world oil supply is 71 million barrels per day at a price of $54 per barrel. Suppose that if the price per barrel of oil increases to $56 per day, then 82 million barrels of oil will be supplied.
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