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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. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant,
What two policies could you use to reduce the total amount of emissions?
Why do you think they each would work?
What would the benefits of each action be (besides emissions reduction)?
What would the costs of each action be?
How would you decide what was the best level of emission reduction?
Assume you received a four percent increase in your nominal salary.
Utilize the principle of contracting-out to provide an economic argument for contracting-out or outsourcing some government-provided service or aspect of a firm's production.
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Show whether change causes a shift in supply curve, a shift in demand curve, a movement along the supply curve, and/or a movement along the demand curve.
Large firms operating globally develop strategies based on the type of industries and businesses in which they compete. Explain the four basic international business strategies discussed in the course and the Hill text.
Suppose that you will receive $2000 a year in years 1 thru 5, $3000 a year in years 6 thru 8, and $4000 in year 9 with all cash flows to be received at the end of a year.
If the airline industry was operating under other market structures, explain how would equilibrium price and equilibrium quantity differ
What describes a tax that is assessed according to benifits received principle. Those who pay the tax recieve the benifits the tax provides or else.
Name various areas of business in the US (or world) where the prevailing market structures have changed dramatically in the past twenty years and discuss the direction of the change.
An individual has to choose between investment A and investment B. The individual estimates that income and probability of the income from each investment are given in the following table (a) Using Excel's statistical tools, calculate the standard..
Provide brief but theoretically sound explanation for each of the following.
Compute point price elasticity of demand for this product.
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