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Electricity is often generated using coal fired plants. Unfortunately, coal burning produces SO2, which causes acid rain. Consider two countries that border each other to answer the following question. Country A’s SO2 emissions are known to negatively affect neighboring Country B through acid rain. However in private decision making, Country A does not acknowledge this and privately chooses an optimal level of nationwide abatement.
a) Assuming that society is comprised of these two countries, show this problem on a MAC/MD diagram. Show MAC, MD of Country A, MD of Country B, and aggregate MD curves.
b) On your graph, show the net gain to society that would be achieved by solving the problem.
Three stores have a problem with theft, and security is a public good. Let’s use S to stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 100 2..
Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
the boards of 2 major telecommunications companies recently agreed to a 16 billion-dollar merger that would create the
Which of the following represents the consensus among most economists today with respect to the management of unemployment?
A piece of equipment that was purchased two years ago for $59,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Since its performance was less than expected, it was upgraded for $20,000 one year ago. Increased demand now ..
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
Illustrate what do economists call the percentage change in real GDP from year to the next. Under a business agreement 70/30 why should the 70% shareholder decision carry all day.
q1. suppose you read in the newspaper that all last week the fed conducted open market acquires and also on tuesday of
q1. explain how immigration between two countries could be an equalizer of wages and economical for both sending and
q1. derive step by step the steady state level of capital and output per worker for each one of the models below basic
How much control might an organization have over pricing based on a product's elasticity. Discuss which of elasticity rules you used to determine your answer.
Device A costs $100000 initially, whereas devise B costs $140000. Maintenenance will be $4500 for devise A and $2750 for devise B in the first year. These maintenance costs will increase 12% per year.
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