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Consider the case of a single polluter and regulator. The regulator knows the marginal benefit of pollution abatement (equivalent to saying the regulator knows the marginal damage from pollution) but he does not know the marginal cost of pollution abatement for the firm. If the regulator proposes to implement a fee on pollution and asks the polluter to reveal the marginal cost of abatement, discuss how the polluter will respond and type of outcome that would result.
Alternatively, if the regulator proposes to give away free permits what would happen?
What if the regulator announces a coin flip will decide whether the policy will be fees or free permits.
A monopolist faces the price equation: P=1,000-0.5Q and total cost: C=50,000 +100Q + .4Q^2. A. Determine the price and output that maximize total revenue, and the level of profit. B. Determine the price and output that maximize profit and the leve..
Solve for the equilibrium output
bargaining outcomes and individual preferencesplease respond to the followingbullbargaining outcomes in a
An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?
Assume that income is RM70. What is the price elasticity at P = 8. Also, calculate arc elasticity at the interval between P=7 and P= 8.
suppose that the reserve requirement is 10 and the balance sheet of the peoples national bank looks like the
hat kind of demand does walmart's products have? Does it vary by season? What market segment does Walmart target?
As a result of Barry's recommendation, Texas Crude purchased the tool for $30,000 on January 1, 2005. By January 1, 2006, the tool had saved a total of $5,000 and went on line full time. After going on line full time, the tool saved Texas Crude $9..
1 a significant difference between monopoly and perfect competition is thata. free entry and exit is possible in a
The State Department of Transportation has called for tenders to supply 10,000 gallons of blue reflective paint to be delivered within two months. You can foresee fitting in a production run of the blue paint and have decided to bid on the job.
Assume that all firms in a perfectly competitive market structure are in long run equilibrium. The demand for the company product rise.
Unemployment in the labor market is increased by forces that keep wages from falling to the equilibrium level. Other than efficiency wages, unionism, and minimum wages, what other factors might cause this wage stickiness?
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