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A large electric utility company releases 62 million tons of greenhouse gases in to the environment each year. A company has committed to spending $1.2 billion in capital over the next 5 years to reduce its annual emissions by 5%. More will be spent after 5 years to reduce greenhouse gases further.
If the implicit cost of a ton of greenhouse gas is $387.10 per ton, how many billion dollars must be spent to reduce total emissions by 3% over the next 5 years?
q1. think about the electoral competition model with three candidates. extend the model to incorporate that candidates
Moral Hazard. A worker can choose either high or low level of effort. The cost of high level is 1, the low level does not cost anything. If the agent chooses the high (low) level, principal gets π with probability pH (pL) and zero otherwise. Find the..
As we have seen, some firms prosper by expanding during the recessions. What risks do firms take when they pursue this strategy? Are there circumstances in particular industries under which a more cautious approach might be advisable?
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented by the utility function U(d, s) = ln d + s, where d is the number of dough..
Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized inves..
What are the characteristics of a PC firm? Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits.
Describe the four types of regional trading agreements discussed in class and show how each type creates a greater and greater level of economic integration. Using the European Union as your example, describe the challenges associated with the variou..
Consumer surplus ….. when international trade is open as compared with a closed economy: Free international export and imports have a net benefit for: Which is steeper when it rises and steeper when it falls
The production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What are the capital's and labor's shares of income...
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: a tax that would effectively increase the price..
Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
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