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Sometimes market activities 9Production buying, and selling) have unintended poistive 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:
1. select 1 of the following policies from the following list that you think would best reduce emissions: Pigouvian taxes, Emission taxes, or cap and trade.Explain it.
2. Why do you think your policy would work in reducing the total amount of emissions?
3. In your answer, explain the costs and the benfits of the policy that you choose
4. How would you decide what the best level of emission reduction was?
Pick a social problem where free markets aren't allowed to function and explain how free market features could be introduced to aid alleviate the problem.
Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? (final answer should be $7778).
your market research group estimated the following demand curve for gadgets the product your company produces and
The demand for new motor homes in the US is highly cyclical and sensitive to diesel fuel values and interest rates. Given these characteristics, explain the effect of the following on quantity demanded
Microeconomic influences on Wal-Mart in Mexico) in this chapter illustrate the major theme of this text: changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and pro..
after visiting several automobile dealerships richard welch selects the car he wants. he likes its 10000 price but
How does a firm then maximize their total revenue? Describe the relationship of the demand curve and total revenue curve, indicating which of the four types of market structures market power like this would occur (i.e., perfect competition, monopo..
Suppose that the government raises the minimum wage to $10.10. Thinking of the four Marshall's Rules of Derived Demand as they apply to a particular industry, analyze the conditions under which job loss among teenage workers in that industry would be..
select a global fortune 500 company that operates in the united states and in other nations around the world.summarize
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
1. Water is produced and sold by the government. Demand for water is represented by the linear func-tion Q=50-2P. The total cost function for water production is also a linear function: TC(Q) = 100 + 10Q.
Scientists have developed a bacterium that they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will ..
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