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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, answer the following questions: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?
Include an evaluation of the impact of past and current budget deficits or surpluses on the United State economy and on the airline industry.
Is the price elasticity of demand elastic or inelastic for that good or service. Explain how should the company alter the price of the good or service to increase revenues.
Suppose that trade costs add 50% to the cost of each good when shipped, which goods would the home country then export and which goods would it import will there be any goods that are not internationally traded assume that the relative wage is 3.
Since the end of World War II, manufacturing firms in the United States and in Europe have been moving farther and farther outside of central cities. At the same time, firms in finance, insurance, and other parts of the service sector have been lo..
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
For each level of output, calculate this manufacturer's marginal cost (MC) (For convenience, place the Marginal Cost between 0 and 1 boat on the second row, the Marginal Cost between 1 and 2 boats on the third row, and so on)
Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future.
Assume Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech company and exactly one year later sells those shares for $315,000.
A mathematically fair bet is one in which amount won will on average equal the amount bet,for example, when a gambler bets say, $100 for a 10% chance to win $1000
You're the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees.
Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.
Suppose that Steve and Jill, a married couple, have decided to allocate $2,500 per year to their "dinner out" budget which will be used to eat at two types of restaurants: i) high-end, fancy restaurants and ii) typical national chain (and less exp..
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