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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
How would you decide what was the best level of emission reduction?
Calculate point price elasticity a a price of $3 and calculate the point price elasticity at a point of $9. Is the demand price elastic or inelastic at these points?
Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated
Which of the subsequent is always true after an economy reaches balanced growth equilibrium.
Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
Find the 90% confidence interval for the compensation of a year when the productivity is 85 and interpret the CI.
Illustrate what government body makes fiscal decisions. Policy makers for national fiscal policies. Explain the effects of fiscal policies.
As a matter of fact you have found several of these to be below minimum wages in your state. Discuss if dropping the observations is reasonable.
Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2.
Suppose we only use labor in a production run. How do we determine the optimal level of labor input in the short run? In other words what condition must be met
Describe three problems of decentralization that occurred under the Articles of Confederation. For each problem you list, identify one solution that the Constitution provides to address the problem.
For se shipment patterns, what would be better brewery location for minimizing annual transportation costs to warehouses.
A tsunami in Japan disrupts the production of Japanese-made cars. What is the impact on the market for new cars.
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