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"Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but no problem outside that area. The total effect of pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes inland prices and/or wages filly reflect the benefits pf cleaning up pollution? Why or why not?”
Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $ 3,000 today but pays off $3,300 with security in one year. Explain in words, how an investor’s choice of which security to purchas..
A decision-maker's preferences over the set A=(a,b,c) are represented by the payoff function u for which u(a)=0, u(b)=1, and u(c)=4/ Are they also represented by the function u for which u(a)= -1, u(b)=0, and u(c)=2? How about the function w for whic..
State the effect of the error on the December 31, 2010, balance sheet of Boss Motorcycle Shop. State the effect of the error on the income statement of Boss Motorcycle Shop for the year ended December 31, 2010.
What is the optimal consumption bundle (a*,b*)? What can you say about this utility function?
The sales manager for ABC Electronics wants to maximize his profit on the sale of two portable media player models, JVD-2000 and MDP-72. The wholesale costs of these models are $310 and $100 per unit respectively. The retail sales prices are $420 and..
Some goods generate spillover benefits from production, but it is:
Recall the Application about how Microsoft responds to the threat of potential competitors to answer the following question(s). Recall the Application. In an effort to deter entry into its key markets, Microsoft engages in:
The citizens of Springfield love donuts. Due to health concerns, the city has decided to make citizens responsible for paying a per donut tax of 50 cents. a) On the graph, please shift the appropriate curve to illustrate the effect of the tax.
If the demand for gold residue high explain what would happen to the price in excess of time.
Discuss the effects of the change on the value of the currency and the country's balance of payments, using historical and current circumstances.
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
“Equal pay for work of equal value” is a commonly held goal, but “equal value” is hard to define. What would be the consequences of legislation that enforces equal pay for what turns out to be work of unequal value?
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