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5. The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.1) At a 0 percent discount rate, are the benefits of harvesting greater than the costs? Why or why not?2) The private market discount rate is 4 percent, but the government has decided to use a social discount rate of 0 percent. What is the opportunity cost associated with using the social discount rate in this situation? Explain.
Think of any financial innovation in the past ten years
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
What is the opportunity cost of Josephine's trip to the wedding
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
A local community voting to raise property taxes to increase school expenditures
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Compare the rationale of the Reagan administration for the 1981 tax reductions with the rationale behind the Kennedy-Johnson tax cut of 1964
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Calculate the price elasticity of demand for Newton's Donuts
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