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1. Contrast negative and positive externalities. Provide an example of each type of externality.
2. Why does an unregulated market overproduce goods with negative externalities?
3. How can the external marginal benefit and external marginal cost curves be used to find the efficient level of an externality?
Cash Flow A B C Initial cost $15,000 $27,500 $22,500 O & M costs / year $ 1,600 $ 375 $ 1,100 Annual cost savings $ 7,000 $ 9,500 $ 9,000 Salvage value $ 3,000 $ 7,250 $ 4,500 Using incremental rate of return analysis, determine which alternative ..
The management is interested in adding another mechanic when the customer's average time in the system exceeds 90 minutes. If business continues to increase, at what arrival rate per hour will an additional mechanic be needed?
Suppose that 500 identical firms face have total costs given by C(q)=0.25q^2+30q+1600 and the market demand is given by D(p)=120,000-250p. In short run competitive equilibrium, what is the market price
Gail Dribble is analyzing the shares of Petscan Radiology. Petscan's stock pays a dividend once each year and it just distributed this year's $0.85 dividend. The market price of the stock is $12.14. Gail estimates that Petscan will increase it div..
Is it true that you cannot have too much of a good thing?
What has been the impact of International Monetary Fund "stabilization programs" and World Bank "structural adjustment" lending on the balance of payments and growth prospects of heavily indebted less developed countries?
Assume a normal random variable x, with mean 100 and standard deviation 20. a. Find the probability that a randomly chosen value of x is less than 95. b. Find the probability that a randomly chosen value of x is between 60 and 100. c. Find the 95th p..
Do these curves have the shape you would expect? Do the minimum and average cost curves intersect at the point you expect?
Workers are paid $50 per unit, per unit capital cost are $10, and your window sells for $5 each. Please optimize the human resource and production decisions. Do anticipate earning a profit or loss? Explain carefully.
Calculate the effective surface area and the number of plates of this heat exchanger
Karla wants to grow spinach. 1 pound of Fertilizer(F) produces 20 spinach or 1 pound of Manure(M) produces 30 spinach. They are perfect substitutes. So we know Q=20F+30M Now Karla wants to produce 300 spinach at the least possible cost.
Suppose customers believe that the good they are buying is of high quality with a probability of p, and of low quality with probability 1 - p. A high quality good is valued at vH and costs cH to produce, while a low quality good is valued at vL an..
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