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Suppose that "gunk" is a pollution by-product of manufacturing computer processors. Environmental activists propose regulation to limit emissions of gunk. The proposed regulation leads to pollution-control costs that are heavily concentrated upon the small number of firms that produce computer processors. Control costs under the proposal are estimated to be approximately $ 1(X) million per manufacturing facility per year. The benefits of reduced gunk emissions are thinly spread out among the 12 million or so people who live in the region where computer processors are manufactured. It is estimated that each of the 12 million people living near a facility will typically incur around $50 per year in external costs associated with uncontrolled gunk emissions, mostly from occasional mild coldlikc symptoms, but gunk is not known to be linked to any deaths. debilitating injuries. or birth defects.
a. Using Oye and Maxwell's terminology. is this an example of a "Stiglerian" or an "01- sonian" regulatory situation? Carefully explain your reasoning.
The marketing team for a restaurant wants to estimate the price elasticity of demand coefficient for its steak dinner. It priced its dinner at different price points in local restaurants to see how many would be sold at different prices.
Differentiate the real exchange rate and the nominal exchange rate and describe two reasons why purchasing power parity does not hold for all goods and services.
What employees are involved, what are their perceived inefficiencies, and how are they compensated and evaluated?
Demand estimation and forecasting and income elasticity of demand
Suppose you suddenly realize that your demand estimates might have some uncertainty in them. How might you change value of surplus you give to the customers because of this?
What is the equilibrium? If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described above?
Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are:
Provide the advantage of dynamic pricing over fixed pricing and what are the potential disadvantages of dynamic pricing?
The future possibility of doctors examining X-rays and performing other responsibilities from remote locations through the Internet. How will this change affect international business?
Current economic theory and their application or lack of application to contemporary economic problems
Formerly, market for air travel in Europe was highly regulated. Entry of new airlines was severely restricted, and air fares were set by regulation.
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