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1. Is it possible for an individual's valuation of an environmental commodity to include both user value and existence value? Explain briefly.
2. Suppose the federal government is considering an air quality policy initiative that would effectively increase abatement (A) of ozone from 10 percent to 20 percent and that the marginal social benefit (MSB) of ozone abatement in millions of dollars has been estimated as MSB = 120 - 2.5A. Determine the dollar value of incremental benefits associated with this initiative.
Presume that a monopolist charges (a uniform) price P = $24 and the price elasticity of demand is -6. We can conclude that its marginal cost should be:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm: Q = a + bP + cM + dPR
How many years does it take for China to surpass U.S
Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behaviour.
Calculate the expected value of the "lottery", in which Maria participates and calculate the utility of the expected value of the lottery.
How might restrictions on private ?nancial account transactions alter the problem of attaining internal and external balance with a ?xed exchange rate? What costs might such restrictions involve?
Describe and critically evaluate the use of real GDP and the unemployment rate to track macroeconomic performance over the business cycle. Discuss current data on these variables.
Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is..
write the productivity factors which may describe the differences in pay between men and women in similar occupations.
Find the equation for planned aggregate expenditure as a function of output and the real interest rate and Calculate the level of short-run equilibrium output at each inflation rate.
how does industry-level price elasticity of demand shape the opportunities for making profit in an industry? how does
suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or Why not?
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