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Consider the following model of a hypothetical market for MSW management services:
MPB = 25 - 2Q MPC = 4 + Q MEC = 0.5Q
where Q is the number of trash containers per household per month.
a. Quantitatively determine the effect of the resource misallocation due to:
(i) the presence of the negative externality, and(ii) the use of a flat fee pricing system in the presence of a negative externality.
b. Support your answer to part (a) with a graphi- cal model.
c. Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively.
Consider a firm with monopoly power that faces the demand curve P = 100 - 3Q + 4A1/2and has the total cost function C = 4Q2+ 10Q + A, where A is the level of advertising expenditures, and P and Q are price and output. Find the values of A, Q, ..
indifference theory can explain all rational choices and behavior.try the theoryout on this situation. suppose the only
There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive. derive the market demand function.
How does the market-oriented tradition associated with Adam Smith differ from the active government tradition advocated by Alexander Hamilton?
Find out the most recent data for Bolivia that can be used to compute its new human development index (NHDI). Make a table to table to record data/values of different components of NHDI of Bolivia and the year of the data.
For the demand function and total cost function compute the output choices for a profit-maximizing monopolist, an output-maximizing monopolist, and a revenue-maximizing monopolist.
you have been hired as a consultant by your local mayor to look at the various market structures. your role is to
Calculate the sectoral gross outputs if the new vector of final demand, as row vector, for year 1948 is given asFDt = f42100 68500 1567001
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according to milton friedman business has only one social responsibility - to make profits as long as it stays within
american mining company is interested in obtaining quick estimates of the supply and demand curves for coal. the firms
discuss measuring income distribution using a geometic representation called the lorenz curve. explain the theories of
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