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The reason negative externalities, otherwise known as social costs, occur is that these expenses are generally not included in calculating the costs of production. Production decisions are generally based on financial data and most social costs are not measured that way. To some extent, can one argue that these negative externalities are 'blind siting' the consumer?
The difference between a monopsonist and a monopolist is that. In a perfectly competitive output market, the value of the marginal product of a resource is
Explain how much output should be produced in palnt 1 in order to maximize profits. Illustrate what price should be charged to maximize profits.
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
Ben is the manager of a branch of a large bank. He has regularly taken money from customer's accounts for his own use and changed the bank records to cover his actions. Ben is guilty of
The Carter Construction Company (CCC) is trying to decide whether to build a high-priced or a moderately priced development in the Hagerstown area. Tim Carter, the CEO of the company, has assessed the value of the construction enterprise depends on t..
Sketch the isoquant corresponding to an output level of 100 units What is the MRTS for this production function? Does the isoquant exhibit a diminishing MRTS?
A homeowner owns a parcel of land bordering the state university's campus. The current fair market value of the homeowner's land is $400,000. Suppose that compensation equals the fair market value of the premises when the state uses its power of emin..
Efficiency refers to whether a market outcome is fair, whereas equality refers to whether the maximum amount of output was produced from a given number of inputs. When a good is taxed, the tax revenue collected by the government equals the decrease i..
Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It has a current market value of $12,000 and it will have a $0 salvage value a..
Suppose that the firm's production technology is given by Y= zF (K,N)= zK^aN^(1-a), where 0
Among which of the following could not bar entry into an industry. Firms prevent collusion among firms regulate natural monopolies correct the outcomes of positive and negative externalities in private markets.
The recent merger of US Air with American Airlines received both national and local attention. The U.S. Department of Justice contested the merger on the basis that it would produce harmful monopoly-like behavior in many airline markets. Develop an a..
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