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An ice cream factory produces output at C=q^2, where q is the quantity of ice creams produced, in tons. in addition, 2 units of emissions are produced for each ton of ice creams (e=2q). pollution damage is $2 for each unit of emissions, which leads the government to charge $2 per unit of emissions as a Pigovian fee. the firm's output sells competitively for $10 per ton.
q1: how many tons of ice cream will the factory produce? how much does it pay in emission fees? what are its profits? q2: a device is invented that would reduce the firm's emissions to one unit for each town of output (e=q). how much would the firm be willing to pay for such a device?
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What does price, average revenue and marginal revenue have in common and Firms can operate in one or more markets and not always on the same side of the market. General Motors is a buyer in the resource market and a seller in the automotive market.
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An inflation shock is a disturbance to the usual behavior of inflation that shifts the IA line. A supply shock is a change in the natural rate of output. Graph the long and short run effects of a positive inflation shock and a negative supply shoc..
1. which of the following statements is correct?a. real gdp is the total market value of the final goods and services
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