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The aluminum industry faces a private marginal cost curve PMC = 2Q and a market inverse-demand curve of PD = 60 – QD. However, production creates an externality with marginal damages of MD = Q. Graph the private marginal cost, the social marginal cost, the marginal damages, and the demand curve. Find the market equilibrium without any government control and the associated deadweight loss. Find the corrective tax which eliminates the deadweight loss, and find the efficient quantity produced. What is the resulting price that consumers face with the corrective tax?
A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a A. Mission statement. B. Corporate charter. C. Business plan. D. Corporate statement.
Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?
Why would China want its own currency to be undervalued relative to the U.S. dollar? How does china maintain an undervalue currency?
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always wiling to exchange three black shirts for one red shirt. What type of preferences is Carl exhibiting? Draw several indifference curves to illustrate C..
Suppose a firm sells a good in 2 markets, each market is characterized by their own respective demand curve. Calculate the profit maximizing outputs and prices in each market assuming the firm can price discriminate. Calculate the own price elasticit..
Donna buys goods X and Y. She can just afford the bundle X = 6 and Y = 11. She can also afford X = 12 and Y= 8. Each of these bundles exhausts her income. Draw Donna’s budget line. What is the ratio of the price of x to the price of y?
Illustrate what are the key determinants of Spectrum Healthcare Resources fixed cost and variable cost in short-run.
q.recently there has been great controversy about some state governments attempting to use eminent domain to tear down
A perfectly competitive external market for the intermediate product exists, and an imperfectly competitive external market for the intermediate product exists.
q.your firm is considering the purchase of an old office building with an estimated remaining service life of 25 years.
Why was it more common for railroads and timber companies to provide health insurance in the early 1900s then for textile mills or accounting firms?
q1. assume the labor demand curve of the firm is w 20 - 0.01 ewhere w is the hourly wage and e is the level of
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