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Explain in simple terms why a carbon tax is more efficient than mandated fuel efficiency reductions for each auto manufacturer.
Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.
A company said it plans to spend $20.7 million in expanding its fiber-optic Internet and television network. It will make the company more competitive than other TV providers and will generate net annual revenue of $4.35 million per year. If the comp..
The principle that a firm should produce up to the point where the marginal revenue (MR) from the sale of an extra unit of output is equal to the marginal cost (MC) of producing the extra unit applies:
Imagine that you are a lobbyist for timber, an established industry suffering from low prices foreign competition, and you are trying to get Congress to pass trade restrictions. Which two or three of the five arguments do you think would be most pers..
Should states or federal government be given more responsibility for poverty programs? What are the implications of placing greater responsibility for these programs on the states? Think about the financing of programs, the extent of poverty in diffe..
Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.
Refer to the yield curve above for February 2015. According to the expectations theory, what was the interest rate expected to be on a one-year Treasury security February 2016? Refer to the yield curve above for February 2015. Suppose the yield on th..
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
What is the future value of a $900 deposit that earns an annual interest rate of 8% compounded quarterly, 5 years from now? Now assume the compounding period changes to monthly, how much more or less will you earn?
Compare the market-wide result of the individual perfectly competitive firms' choices of profit-maximizing output level with the choice of the monopolist. Explain the implications of the break-up for the profitability of industry members
Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
You are the manager of a firm that receives revenues of $175,000 per year from product X and $50,000 per year from product Y . Both products have similar production costs. The own price elasticity of demand for product X is -1.5, and the cross-price ..
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