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Q. Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude thata. Butterflies are a negative externality for Billy and Sammy.b. Denise will set up the butterfly garden without any help from her free-rider neighbors.c. If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.d. Denise'll not have one, if Billy refuses to contribute to the butterfly gardene. Denise'll set it up, if Billy and Sammy contribute the amounts at which they value the butterfly garden,
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
Compare the rationale of the Reagan administration for the 1981 tax reductions with the rationale behind the Kennedy-Johnson tax cut of 1964
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
Determine the cost to the government of buying firms unsold units
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
The trade or business of manufacturing dolls and accessories
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
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