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Suppose the government wants to restrict the number of cars by issuing a limited number of marketable permits to produce cars. The inverse market demand curve for cars is p = 20,000 − 0.9Q, the marginal cost of producing cars is constant at $4,600, and the marginal pollution and congestion cost of cars is E(Q) = 400 + 0.1Q. What is the socially optimal output of cars? At what price would marketable permits to produce that number of cars trade?
A project is being considered that will cost $17000. Expected returns are $3000 at the end of the years 1 and 2, and $X at the end of years 3 and 4,$3000 at the end of the years 5 and 6,$X at the end of the years 7 and 8, with this pattern repeating ..
What would be implied by a positive price elasticity of demand?
Suppose a firm faces the inverse demand curve P = 600Q– 0.5. The firm has the total cost curve TC = 1,000 + 0.5Q1.5. Find the firm’s profit- maximizing output, price, and profit.
What are the advantages and disadvantages of free trade for the United States? Be specific in giving examples of how free trade and off-shore manufacturing helps and/or hurts businesses, workers and consumers in the United States.
What are some of the monetary policies put in place during the decade of the 1980s? Consider the discount rate set by the Fed, the rates on reserves, and open market operations. What were the actions and impacts of these policies on businesses and in..
Compare the risks of borrowing in the form of debt and receiving FDI in the form of equity. If debt is generally considered more risky to borrowers than equity, why is so much borrowing by foreign nations in the form of debt rather than equity?
How did Jeffersonians deal with the difficult problems of party politics and slavery? Additionally, discuss the achievements and disappointments of the Jefferson Administration. Would you consider Jefferson one of our greatest presidents why or why n..
Which one of the following would increase per-unit production cost and therefore shift the aggregate supply curve to the left?
One implication of the Lucas Critique is that
If the Boca Raton Company has only one rival also if its rival too makes such a declaration does this change payoff matrix? If so, in illustrate what way.
Load the Blue Spruce Light Up Data (latest file, through 2013). Extract and specify a model that predicts Cars through the gate as a function of Price and Average Daily Temperature.
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model? Another question lurks behind nearly all discussions of macroeconomic policy: Why should we be..
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