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For each of the examples below, answer the following questions:
(a) Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality.
(b) If there is an externality, does it seem likely that private markets will arise that allow this externality to be internalized?
1. Toxic waste production by firms
2. Research and development by a high-tech firm
3. Individual vaccination against communicable illness
Assume that the initially equilibrium was 200 units and that this was also full employment level of income. Suppose that the consumption is C = 25 + 0.8YD,
Illustrate what would shoppers see when they shopped in Wal-Mart and the other "big box" stores that sell so many imported items
A potential control for managing risk of employee fraud is to send employees on mandatory vacations. Describe the relation of that control with payroll function.
What is the value of APC at income level Z, at income level RM 2000, what is the value of APC
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.
Discuss the components of Gross National Product? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly
What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
Describe the benefits and drawbacks of dynamic pricing for this particular company.
Bertand: If the firms compete on the basis of (continuous) price, what is the Nash equilibrium if the game is played once? A finite number of times? Explain clearly.
Halley's comet has a period of approximately 76 years, and it moves in an elliptical orbit in which its distance from the Sun at closest approach is a small fraction of its maximum distance.
The perticular information needed to calculate each metric should be discussed. For each metric discuss the appropriate target value and the actions that need to be taken to achieve the target.
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