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Consider a market where demand is p=10-2Q. There is a negative production externality of $2.50/unit of consumption. Supply is equal to p=Q/2.
What is the market equilibrium?
What is the social optimum quantity and price?
If the government uses a tax to get producers to internalize the externality what is the nest price received by producers?
Calculate the total surplus at the market equilibrium.
Calculate the total surplus at the Social optimum and with the tax.
suppose three identical firms are engaged in cournot competition in quantities. they all have marginal costs 40.
Suppose all the competitve firms collude to form one single monopoly firm. (Collusion changes neither the demand nor the cost conditions in the industry.) Discuss the economic effects of the change in market structure.
Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect and what is the overall welfare loss to Venezuela as a result of the quota?
examine two 2 organizational forms of business e.g. functional product etc.. predict the possible implications of the
7, recent tax reforms make college tuition partially tax deductible for certain families. this should motivate more people to attend college. how will this higher demand for college education affect tuition prices how will it affect the cost of co..
A $2.50 decrease in the price of the $17 salmon entrée increased sales from 40 to 75 meals per week. Which entree should he choose to put on sale?
describe developing countries and how they differ from industrial market economies. how can international trade aid
How many minutes will the average consumer spends travelling to another ATM machine and what is the resulting non-pecuniary price of an ATM transaction?
Suppose Virginia withdrew $10,000 from her bank. If the reserve ratio is 2 percent theen this transaction willl lead to decreasing ____ in checking account balance.
part-11. describe the industry and explain the general pattern of change of the particular market model.2. hypothesize
Depict the equilibrium situation in the labor market using the Wage-Setting and Price-Setting relations and carefully label the graph. Use this model to illustrate and explain what happens to the natural rate of unemployment and real wages
the case for regional integration is both economic and political. the case for integration is typically not accepted
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