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Consider a monopolist that vents an ozone reducing chemical into the atmosphere as a consequence of their production activities.
A. Is this outcome efficient? Explain with the help of a diagram.
B. Does the monopolsit have an incentive to reduce their pollution? Explain with the help of a diagram.
C. Modern economists suggest 2 solutions for the pollution problem above. Explain how pollution tax (use a diagram) and an emission permit trading scheme can both "solve" the problem of pollution.
The fed fights inflation by. Lowering the long term real interest rate, which increase investment and spurs economic growth? Decreasing the monetary base, which raises the interest rate and increases saving?
A Case Brief should not exceed 500 words (one single-spaced typed page). It should be written with the assumption that the reader is familiar with the details of the case.
The Chicago Board of Trade voted to create a private market for right to emit sulfur dioxide. The Clean Air Act of 1990 established a limit, beginning in 1995, on total emissions of sulfur dioxide from 110 power plants. Firms finding it relatively ex..
Would you change your business entity before you hire any employees? Why or why not? If so, what kind of entity would you select. Explain. Do your readings this week deter you from hiring any employees or continuing with your car detail business?
A U-shaped average total cost curve implies what?:
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
A local department store offers 24-month financing for a certain $1,000 appliance at an “interest rate of 9% per year”. What is the effective annual interest rate a customer would actually pay for this financing? What is the nominal annual interest r..
In Mexico, it takes 3 days to produce a bulldozer and 12 days to produce an airplane. In Brazil, it takes 2 days to produce a bulldozer and 10 days to produce an airplane. The opportunity cost of producing an airplane is lower in
Through the use of strategic alternatives, companies may compete in a marketplace, achieve its vision, or if no vision has been articulated, decide where it might go and what it might achieve. Strategic alternatives do not consist solely of strategie..
What is the importance of the political ideology as a key determinant of government policy toward Foreign Direct Investment (FDI)?
It is likely that a pro trade production growth effect will lead to an expansion of trade since the presence of inferior goods is relatively rare. Explain.
To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries. Is there a variant of the UIP that we can expect to hold (given the other assumptions) under such asymmetr..
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