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Suppose the government is considering two alternative policies to achieve a target level of emissions for an industry of 500 tonnes. Option 1's approach is summarized by the marginal abatement cost curve: MAC1 = 800 - E1 and Option 2's approach is summarized by the marginal abatement cost curve: MAC2 = 400 - 1/2E2. What is the total abatement cost of achieving the target emissions under each policy? Based on this calculation, which of the two policies is the cost-effective choice?
The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50%, approximately how much tax needs to be added to a $1 pack?
The burden of a tax is mainly borne by the buyer if: a. the demand for the good is relatively price elastic. b. the supply of the good is perfectly price elastic. c. the supply of the good is relatively price elastic. d. the demand for the good is re..
The Stockholm Declaration and the Kyoto Protocol are two international conventions that protect the environment. However, individual countries are responsible for enforcing the regulations of each convention. Is this an effective method? Why or why n..
A 10 percent reduction in price that leads to a 2 percent increase in total expenditures indicates a price elasticity of demand greater than 1. If the percentage change in price is less than the resultant percentage change in quantity demanded, deman..
How would you HONESTLY describe the primary "media outlets" upon which you rely (the primary sources upon which you rely for your information
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
last fiscal year 01-Jan to 31-Dec, Norco, Inc. had a gross revenue of $32,718,166 cost of goods sold and interest expenses of $27,883,785 and total depreciation charge of $2,678,818. Also on October last year, Norco completed a purchase of and placed..
With flexible exchange rates
Draw graphs with quantities of pepperoni pizza on the horizontal axis and quantities of anchovy pizza on the vertical axis to illustrate the following situations. In each case draw an indifference map (bunch of indifference curves) and make a little ..
Why did Verizon decide to acquire Yahoo? Discuss the benefits and challenges they face with the acquisition. Is this a good deal for Verizon? How would the acquisition affect Yahoo's business strategy?
Construct a Capital Allocation Line for a portfolio consisting of the T-bills and the risky portfolio. Draw the line and indicate the y-intercept and the point where the portfolio is entirely made up of risky assets. What is the slope of this line?
Widgets are sold by a constant-cost industry where each firm has fixed costs of $60 and each firm has the following marginal cost curve: In long run equilibrium, what is the price of a widget? The city would like the price of widgets to change. Plan..
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