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There are 4 types of externalities considered by economists. Positive consumption externalities, negative consumption externalities, positive production externalities, and negative production externalities. You are asked to perform a market analysis: Please show the effects of market circumstances and policy changes in accompanying supply and demand graphs, also providing some written commentary. (a) Please give an example of each type of externality. An example should include a url or other such citation. Depict the relevant market in a supply and demand model. (b) For two of the four cases (your choice) show what the market outcome would be in comparison to the market outcome that would occur absent an externality. (c) For each of the two cases in (b) identify a policy that a government could reasonably enact to solve the instance of market failure.
Suppose that County A has a money demand function given by Md= 50 + 2Y - 5r, while Country B has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that
Demand for a good is elastic if quantity demanded ________________ in response to a price change. a. changes very little b. changes significantly c. stays the same d. changes either very little or substantially
Consider a market with the inverse demand p(y)=7-y. Two firms operate in this market as Cournot competitors. Both firms have the cost function c(y)=y+F. If both firms are making nonnegative profits in the Cournot equilibrium, the fixed cost F must be..
If economy has full flexible prices and demand unexpectedly increases you would expect that the economy’s real GDP would tend to Increase, Decrease. Remain the same? What happens when demand fluctuates lower than expected? What happens when demand fl..
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
the standard product of labor is 6 flutes per day also the marginal product of labor is 8 flutes per day.
Delta Corporation has a bond issue outstanding with a semi-annual coupon with a nominal rate of 8% and 5 years remaining until maturity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify..
q.suppose that a banks customer deposits 4000 in her checking account. the required reserve ratio is 0.25. what are the
Research a company that has been in the news for a significant business decision within the last 18 months. Summarize the decision that was made, and state your opinion on whether it was a good or bad move for the company. Post a link to the article ..
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Intially Starbucks expanded internationally by licensing its format to foreign operators. Why it soon be came disenchanted with strategy.
Elucidate the difference among nominal and real variables and give tow examples of each. According to the principle of monetary neutrality, which variables are affected by changes in the quantity of money.
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