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Ronald owns a cattle farm at the source of a long river. His cattle’s waste flows into the river and down many miles to where Carla lives. Carla gets her drinking water from the river. By allowing his cattle’s waste to flow into the river, Ronald imposes a negative externality on Carla. In each of the two following cases, do you think, that through negotiation, Ronald and Carla can find an efficient solution? What might this solution look like?
a. There are no telephones, and for Carla to talk to Ronald, she has to travel for two days on a rocky road.
b. Carla and Ronald both have e-mail access, making it cost- less for them to communicate.
W(sub)a= 1/a1(Y1)+1/a2(Y2)+1/a3(Y3)+1/a4(Y4) where a(i) are the constants. a) What restriction on the ai is needed for Wa to be an unbiased estimator of mu? b) Find the variance of Wa.
Suppose that in the hypothetical country of Vanadia, picture frames are distributed based on government policy. This system of distributing goods gives the residents of Vanadia an incentive to spend timea) earning money b) lobbying government officia..
What is an oligopoly Under what circumstances is the model applicable Provide an example of a specific industry that you believe fits the model and explain your rationale. Select at least one in the domestic as well as in the international context..
Assume that the aggregate demand curve is P=120 - Q, where P is price level and Q is real output. If the short-run aggregate supply curve
What are the primary differences between industrial users and home users of electricity that allow the utilities to discriminate between the two markets in terms of price? How do we compensate for these differences in order to improve the "common ..
Express kinetic energy in terms of the base SI units: the kilogram, meter, and second. Write your answer in terms of the abbreviations ({kg, m, s}), and then identify the resulting derived unit.
Suppose that you can sell as much of a product as you want at $100 per unit. Your marginal cost is MC = 2Q. Your fixed cost is $50. What is the optimal level of output? What is the optimal output , if the fixed cost is $60?
The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).
Greg and Tanya Ridpath have two children, ages 6 years and 5 months. Their younger child, Ray, was born with a congenital heart defect that will require several major surgeries in the next few years to fully correct. Greg is employed as a salesperson..
1. how are producers of the goods we consume supposed topromote societal well-being through the pursuit of profits 2. what role does the use of capital and technology play in helping the free market now
The small town of Middling experiences a sudden doubling of the birth rate. After three years, the birth rate returns to normal.
Determine the price elasticity, and income elasticity of demand and where Q denotes passengers in thousands per year, P the (average) ticket price, and I US national income.
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