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Externalities-analysis and policy design: Suppose that in a competitive market, demand is given by the equation P = 600 - Q, and supply is given by the equation P = 160 + Q, where P is price and Q is quantity of some good or service. Production of each unit of output Q leads to a marginal external cost of $50, caused by pollutants emitted by the production of Q. If we add this marginal external cost to the market information, the equation for the social-cost supply curve is given by P = 210 + Q.
b. Compute the monetary value of the deadweight social loss from the market failure that occurs if society lets firms to continue to produce negative externalities without regulation.
First explain what the free rider is ?Then discuss how the problem applies to
Describe what long-term economic growth is and if there are any limits to the U.S. long-term economic growth.
Bright Future, Ltd (BF) is a non-profit foundation providing medical treatment to emotionally distressed children. Determine the optimal amount of service provided by BF.
Assume that a price support system for cotton requires the federal government to pay farmers $3,000 for each acre to not plant cotton. How would you shift either the supply or demand curve for cotton to describe the effect of this action? In your a..
Caviar and champagne are complements. Recently, pollution has been a problem in the Volga River, where much of the world's caviar originates. The sturgeon that live in these waters are laying fewer eggs than before. Show graphically and explain..
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
If Hotel Bethlehem can charge two separate prices for two separate blocks of guests, what are the two prices they charge? how many rooms do they ll at each price? If Hotel Bethlehem only charges one price, how many rooms do they ll? What price do t..
Illustrate what are institutional arrangements. Why are they considered important fundamental determinants of economic growth and development.
What fiscal policies do you think caused the crisis and what were the effects of the fiscal policies implemented in reaction to the crisis?
As across many types of technologies that could be useful. However, I am unable to pinpoint one specific technology.
managerial economics to analyze the reasons for and against the merger, also to assess the performance of the consolidated company since its completion.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
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