Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume that the daily demand for packs of cigarettes in the tobacco-addicted nation of Pcoria is Q=100-P
Further assume that the marginal cost of producing a pack of cigarettes is $6, and that the market for cigarettes is perfectly competitive. Assume that each pack of cigarettes smokes does $6 worth of health damage to the smoker in the form of increased cancer risk and a total of $5 worth of health damage to the smoker's neighbors via secondhand smoke. Finally, assume that all Pcorian cigarette consumers are aware of these costs.
a.) Assume that a Pcorian smoker named Jay states that he is willing to buy a pack of cigarettes for $8, but not a penny more. In this market, where the price is $6 per pack, what are the private benefits and private costs incurred whenever he buys a pack of cigarettes? Is it privately efficient for him to buy a pack of cigarettes at this price?
b.) What about the public benefits and public costs? Is it socially efficient for him to buy a pack of cigarettes at this price?
c.) Suppose that, due to the introduction of a hyper-effective tobacco fertilizer, the cost of producing a pack of cigarettes plummets to $1. Now is it socially efficient for Jay to purchase a pack of cigarettes?
A firm has $5 million in sales, a Lerner Index of 0.75, and a marginal cost of $45, and competes against 3,000 other firms in the relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over ma..
Why does government mandate individuals to purchase their own insurance in some cases such as automobile liability insurance but directly provide insurance to people in or situations such as health insurance.
Now suppose that it costs $20 to migrate to the United States. Who will migrate to the United States? What has happened to the skill level of those who elect to migrate? What has happened to the average skill level in the home country? Why?
Consider the economy described in Box 1. Consider also a “balanced budget” increase in G and T (in other words, G and T both rise by the same amount). Each increase of 1 unit in G and T will a) increase r by .005 b) increase r by .015 c) decrease r b..
Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently and some firms leave the industry and the industry returns back
An oil and gas XYZ company expects to produce 200,000 barrels of oil in time to deliver it on March 1, 2015. The management needs at least $30,000,000 for the oil to pay salaries, pay back loans, invest into new equipment, etc.
Suppose an industry facing an inverse demand equation equal to P = 120-4Q faces a new pollution control law that shifts its constant marginal cost of production from C1 = 50 to C2 = 68. Compute the social costs of regulation in this industry.
If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response?
"Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:"
The movement to free international trade is most likely to generate short-term unemployment in which industries?
Which is a characteristic of the German health care system?
Suppose you are given the following Total Product Function: ,where Q=100K ^ 3/2 L ^ 4/2 M ^ 4/7 is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find the Average products..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd