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Q1. Assume that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?
Q2. Assume that the firm's production function is given by Q = 10KL1/3. The firm's capital is fixed at K. What amount of labor will the firm hire to explain its short-run cost-minimization problem?
Q3. Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output?
Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.
Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitability.
A competitive advantage furthermore earns a life span income of $6 million moreover the non-steroid user earns $1 million.
If each economy specialized in its comparative advantage, what range of prices would bacon trade at in terms of eggs.
Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.
Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.
Explain how high must the deductible be to encourage low-risk behavior
Explain how could ABC use interest rate swaps to reduce the exposure of its cost of debt to interest rate movements.
Will these monopolies typically earn economic profits. Why do not other airlines enter these monopoly routes.
Explain the steps that would be used to conduct a Benefit-Cost Analysis of a government policy to alleviate the problem.
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is $5 a ride. Motorville taxicab drivers want to obtain government's permission.
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