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Suppose the production of electricity by a utility generates pollution that harms others. Suppose also that Coase bargaining can occur between the utility and the victims of pollution but that the utility has not been legally liable for the damages from its pollution. How would the utility legally liable for the damages from its pollution affect pollution reduction?
If the electric utility and the people suffering the effects of the utility’s pollution can bargain, then making the utility legally liable for the damages from its pollution will
a. Increase the amount of pollution reduction by decreasing the marginal cost and increasing the marginal benefit of pollution reduction to the utility
b. Not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change
c. Increase the amount of pollution reduction by increasing the marginal cost of pollution reduction to the utility
d. Increase the amount of pollution reduction by increasing the marginal benefit of pollution reduction to the victims of pollution
e. Increase the amount of pollution reduction by increasing the marginal benefit of pollution reduction to the utility
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
Lane is responsible for reviewing the standard costs. While revieweing the standard for the coming year, two ethical issues arise.
What kinds of actions can/should the Federal Reserve take in the event that the economy falls into a recession? Why might these actions help bring the economy out of the recession?
Analyze the differences and similarities among firms for two different market structures: Monopoly and Monopolistic Competition. Clearly demonstrate how both types of firms determine the quantity (Q) to produce that maximizes profit.
Suppose that, in a perfectly competitive market at the profit-maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply, and the price of the good as we move..
The firm output sells competitively explain how many tons of output will be produced.
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers.
q1. for each of the following events answer the following1 how would this event affect the money supply?2 what sort of
Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price
analyze the graphs and briefly describe the similarities and differences between the short and long run operation of each business
What can you say about the level of the real interest rate if people instead are risk averse.
Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why dont the rms raise prices to the level that maximizes joint prots? What is the DWL in this model?
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