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What is a definition of externalities. How does the presence of an externality distort a normal free market? What three potential solutions are suggested for overcoming externalities? How do they prevent an externality such as pollution?
If monopolistically competitive firms are making positive economic profits, then new firms would:
This assignment is based on an article published in The Economists' Voice by Cass R. Sunstein, titled 'The Precautionary Principle as a Basis for Decision Making', in Volume 2, Issue 2 , 2005. The article and rubric (i.e. assessment criteria) are att..
Suppose that a car dealer has a local monopoly in Selling Volvos. It pays the wholesale price w to Volvo for each car that it sells, and charges each consumer the retail price p. Suppose that the car dealer and Volvo work separately. What would be th..
Would it be more accurate to describe supply-siders as supply-and-demanders, who object to an overemphasis on aggregate demand
Who developed a theory of distribution within capitalism? What is the basic assumption of classical theory?
Charlie likes both apples and bananas. He consumes nothing else. Charlie consumes x1 bushels of apples per year and x2 bushels of bananas per year. What is the function of budget constraint for Charlie and the marginal utility for the apples and bana..
Many economists specializing in "growth theory" contend that developing countries may achieve strong economic growth by increasing the amount of capital and labor available for production, but that this type of growth strategy is incapable of support..
There is no recognizable pattern. Calculate the probability distribution for next year's discount rate.
When the price of zinc dropped below? $1,900, the price dropped below? Alcoa's (marginal, shutdown, competitive) price, so the company
The daily demand for pizzas is Qd = 720 - 30P where P is the price of a pizza. The daily costs for a pizza company initially include $50.00 in fixed costs
Large airlines have enormous fixed costs. Their business after the attack of September 11, 2001, was dismal. US Air and United declared bankruptcy. American obtained large concessions from employees and avoided bankruptcy (until 2011). Your written c..
Describe the point at which diminishing returns occurs. indicate the points that delineate the 3 stages of production.
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