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1. What is meant by externalities? What are different types of externalities?
2. What are different types of externalities?
3. What is the Coase theorem? How is it related to externalities?
Economic surplus could be increased at a higher price because firms would generate more revenue.
elling price of another product Y in dollars per unit. The inverse delivery curve. Conclude whether X also Y are substitutes or complements.
Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.
The long-run average-total-cost curve shows. Total fixed costs generally decline as output is increased. Average total costs tend to be U-shaped. As output increases, average variable costs converge to average total costs.
Given that attendance at minor league baseball games are substitutes for attendance at MLB games. Explain why a fall in minor league ticket prices may adversely affect MLB game attendance.
Illustrate what will be the new equilibrium price, if the government puts a 15 cent per tax on the candy.
Illustrate what is the effective rate of protection for sneakers.
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
Although firm expects the order to be of 6 units, determine the minimum average cost of the firm with these different order sizes.
If your rival advertises and you do not, you will make $1 million and your rival will make $3 million. Does rival have a dominant strategy. What is Nash equilibrium for one-shot game.
Think of one situation in which the Government is actively involved with the purpose of changing an outcome in the appropriate market. Do you agree that the Government should be involved? Why or why not?
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