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A firm producing batteries is letting the acid leak into a local river. Each ounce of acid in the river causes $50 of damage to a downstream oyster farm.
a. Graph the market for batteries, with a demand curve of P= −Q + 200 and private supply curve of P=Q .
b. Now graph the social marginal cost curve. Illustrate the deadweight loss of the private equilibrium.
c. How much of a tax per unit would the government need to impose to force the battery firm to internalize the externality? What quantity regulation could the government implement to arrive at the socially optimal output? What about this situation allows these two methods of intervention to achieve the same result?
Calculate GDP loss and government expenditure needed to eliminate this loss if full employment GDP is $400, unemployment rate 8.9%, and the MPC is 0.8.
at an annual general inflation rate of f . Also, i = 9%. What is the amount A in actual dollars equivalent to A’ = $1,000 in constant dollars? Please provide step by step detail.
corporate profitability declined by 20 percent from 2008 to 2009. what performance percentage would you use to trigger executive bonuses for that year? why? what issues would arise with hiring and retaining the best manager?
When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
On balance, should companies continue to allow personal technological devises on the job or should they disallow them? If they allow them, what policies should be put in place?
How would you value the goodwill that is obtained in this way? Guided Response: Think about an example that pertains to you.( health care) If there is expected goodwill would you be prepared to bid lower to get a contract?
You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?
Which option should Terim recommend
Discuss the nature and function of a price index, and describe the difference between nominal and real GDP, Assume that nominal GDP for 2012 was $700B with a price index of 110 (using 2004 as the base year). What is the real GDP for 2012? Why do econ..
If price controls are initiated, we would expect that
Describe the procedure necessary to solve for equilibrium analytically. Show how this translates in an economy with an Edge worth box. If you have a demand curve as part of your solution method you should explain how it is derived from consumer and/o..
q. what is the value of a piece of land? consider the following scenarios.1 suppose that you own a farm run by tenants.
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