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Question: a. Why does internalizing externalities with taxes or subsidies sometimes increase the prices of goods and sometimes decrease them?
b. When would workers in an industry benefit from internalizing its externalities?
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve
Calculate the number of unemployed individuals, the size of the labour force, the unemployment rate, and the labour force participation rate.
A company in a competitive market must accept the market price, but a monopoly can set a price that maximizes its own profit. Explain giving consideration on the elasticity of the demand.
Differentiate between microeconomics and macroeconomics. Briefly stated, microeconomics is about individual decision makers, whereas macroeconomics is about the aggregate effect of all decision makers
Suppose the marginal social cost of providing health care to a person is given by the equation 20+4Q. An individual's marginal benefit of health care is 300-Q. This individual has an insurance policy that stipulates that the person will pay 25% c..
Using the historical tables from the Budget of the US government, utilize the website to determine where the US government allocates its expenditures.
What is the formula for computing for national income in a closed economy with government intervention
Comprehensively distinguish between expansionary and restrictive fiscal policy. Is the current fiscal policy stance in SA expansionary or restrictive? Motivate your answer comprehensively. (half a page with references)
what happens to a company's value added when it "contracts out" work? - what will happen to the economy as a whole?
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
1. Calculate how the spot exchange rate will adjust towards equilibrium, given that everything else stays constant. 2. Explain the mechanism that leads the market towards the equilibrium? 3. Graph this market and the adjustment towards equilibrium
A woman managing a photocopying establishment for $25,000 each year make a decision to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows:
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