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Suppose that smokestack filters are such that initial investments in filters yield high reductions in pollution, but as additional filters are added the marginal reduction in pollution declines. You can now think of the firm as using two additional inputs, pollution vouchers and smokestack filters, to produce x output legally. Does the overall production technology now have increasing, constant, or decreasing returns to scale?
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering price. Why organization chosen lower prices to increase revenue.
describe the three types of unemployment. What types of government programs would be most effective in combating each type of unemployment
To find and explain the Nash equilibria of a widespread form game can I use the equivalent normal form game to do that.
Then make an argument for why the government may still prefer using the other approach.
Find out his utility maximizing H and L. Assume he is not eligible for welfare. Now assume he is eligible for welfare. Does he take welfare or work.
The risk-free rate of return is 3.5 percent. Illustrate what is the current value of one call option on this stock if the exercise price is $40.
Distinguish between the resources market and the product market in the circular flow model.
At a product price of $52, will this firm produce in the short run. Illustrate what will profit or loss be. Complete the following short-run supply schedule for this firm.
what is the expected economic life for this water pump and what is the minimum annual equivalent cost.
Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
If summer's supposition is correct, then we should expect for wealthier countries to have cleaner environments other things equal.
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