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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. Assume that you are a policy maker concerned with correcting the effects of gases and particulates emitted by a local power plant. Write a 1-page memo that addresses the following points:
Format your answers as a memo with 2 pages of written content. You may use bullet points, but please cite your sources. Include a reference list.
Calculate the price elasticity of demand for Einstein's Bagels and explain what it means. Derive an expression for the (inverse) demand curve for Einsteins's Bagels.
What is the difference between substitutes and complements? Indicate two goods that are substitutes for each other. Indicate two goods that are complements.
in the long run the most helpful action that a monopolistically competitive firm can take to maintain its economic
Would a series of bank runs in a country decrease the total quantity of M1 Wouldn't a bank run simply result in funds moving from a checking account to currency in circulation How could that movement of funds decrease the quantity of money
Consider a firm that is a monopolist in the domestic market facing a demand curve given by p = 100 - q, but can also sell in the world market where there is perfect competition and the market price is 60. The firm is a price taker in the world mar..
joe browns dairy operates in a perfectly competitive marketplace. joes machinery costs 500 per day and is the only
Normal 0 false false false EN-US X-NONE X-NONE Explain the value that Marx..
Two small open economies, Fixed and Flex, can be described by the Mundell%u2013Fleming model. The countries are otherwise identical except that Fixed maintains a fixed exchange rate, while Flex maintains a flexible exchange-rate regime.
Global Organizations
which of the following public policies restricts competition?a. licensingb. patentsc. import quotasd. all of the
Homothetic Preferences. The preferences represented by >= are homothetic if for any two bundles X and Y such that X >= Y, we have tX >= tY for all t > 0. Solve the consumer's problem and deduce the demand functions.
Suppose that low-fat milk and cream are complements in production. A decrease in the price of cream will result in _________
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