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Marginals and Totals
The following graph illustrates the marginal costs and benefits of reducing emissions of benzene from year 2005 levels in a chemical factory. Currently, the firm is not reducing any emissions at all.
a. Suppose that state regulators tell the firm it must reduce emissions by 20 lbs per day from zero. On the graph, illustrate the areas that show (1) the total benefits of reduction; (2) the total costs of reduction; and (3) the total net benefits of reduction. Approximately, what are these values?
b. If, after achieving a reduction of 20 tons per day, firms then had to increase their reduction further from 20 to 21 lbs per day, what is the approximate marginal benefit? Marginal cost? Increase in net benefit?
c. Suppose it was discovered that the benzene emissions, in addition to doing harm via air pollution to people, were also contaminating the river. How would this affect the picture and the efficient cleanup level?
Do you believe it is proper for businesses such as internet service providers to collect data on their customers shopping behavior and personal profiles Under what situations, if any, is it proper or improper Should all companies collecting custo..
A corporate bond has a face value of $10,000 with a bond rate of 6%. The interest of the bond will be paid quarterly. The bond will mature in 10 years. If the bond is sold at $7,500 on the market, what is the yield (return) on the bond
Derive the rm's marginal product of labor curve. Derive the rm's average product of labor curve. If the rm has an output quota of 5,120 widgets, how many laborers must it employ in the short-run to achieve this level of production?
Is there an existing free trade agreement?
If the demand and supply curve for computers are: D = 100 - 6P, S = 28 + 3P where P is the price of computers, what is the quantity of computers bought and sold at equilibrium.
Draw typical aggregate demand and short-run aggregate supply curves. Label the horizontal axis "Real GDP" and the vertical axis "Aggregate price level." Label the equilibrium point E1, the equilibrium quantity Y1, and equilibrium price P1.
Describes how the capital and labor inputs are transformed into output - The capital evolution equation - shows that net additions to K arise when investment exceed capital depreciation.
Suppose that as an owner of a federally insured S&L in the 1980s the price of real estate falls, and most of your loans go into default. In fact, so many loans go into default that the net worth of the S&L is a negative($5 million).
An investor is interested in purchasing a new 20-year government bond carrying a 10 percent annual coupon rate with interest paid twice a year. The bond's current market price is $875 for a $1,000 par value instrument.
whether she is better off or worse off than she was in Year 1
Assess the success and shortcomings of the Oslo process from the Palestinian point of view.
A used car delaer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing. The car you like cost $6000. a) What is you effective annual interest rate
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