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In the market for SO2 pollution permits, suppose that a key component to technology for reducing SO2 emissions comes from China, and that part needs to be replaced every year. And, suppose that import tariffs are increased for Chinese imports. Demonstrate how that would affect the market for SO2 pollution permits.
Suppose there are two spice-producing firms, and each can set up one trading post. Illustrate where would they set up trading posts and what prices would they charge.
The following table represents the costs of five possible sellers. Refer to Table 7-16. If each producer has one unit available for sale, and if the market equilibrium price is $70, how much is the combined total cost of all participating sellers in ..
q.now you want to improve the aggregate production function to increase the provide capacity of the economy. that is
We defined marketing as, “the art and science of getting people to spend their money on your product rather than the other guy’s, and be happy that they did so.” Do you think that’s true? Does some Wizard of Oz person-behind-the-curtain get you to bu..
The first demand-side elasticity discussed in class and the readings was the price elasticity of demand (ED). It is defined as the
Suppose that at the equilibrium price and quantity, the marginal revenue is -$36 and the price elasticity of demand for a linear demand function is -0.67 Then we know that the equilibrium price is:
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*Y UB(X,Y) = 2X + Y The initial endowments are: A: X = 4; Y = 2 B: X = 4; Y = 6. What is the marginal rate of substitution for consumer A at the..
Producer and consumer surpluses are measures of:
1. Assume that inflation is currently 4% but the Fed’s inflation target is 2%. if the economy is currently at full employment, what should the Fed choose as a target for the federal funds rate?
Find the outcome for: a) Cournot model b) Cartel model c) Stackelberg model d) If the Cournot game is played repeatedly for infinite number of time, find the discount factor that will make cooperation sustainable.
The two primary issues in international commerce are dumping and tariffs. Dumping is the international form of predatory pricing, prohibited by the WTO. Tariffs are taxes on imported goods, effectively increasing the price on these goods. A domestic ..
Suppose that for a particular economy and period,investment was equal to 100,government expenditure was equal to 75,net taxes was fixed at 100,and consumption was given by consumption function c=25+0.8Yd where Yd is the disposable income and Y
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