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1: Explain how an economist would determine the optimal level of a pollution tax. What is the major uncertainty in using a pollution tax?
2: What are some particular problems with stock pollutants? Why might a reduction in emissions levels of a stock pollutant be insufficient in reducing the negative effects of the pollutant?
Commodore Candies produces a 3-pound box of chocolate that it sells for $6.75 to various retail outlets. Commodore’s output capacity for this product is 10,000 units per month, with a one-shift operation, but it can produce more using overtime labor,..
Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession. Illustrate what disagreements did Keynes ..
At 36 units of labor, a firm finds that both average product of labor and marginal product of labor equal 42. We can conclude that the average product curve at 36 units of labor is
Forecasting models can be divided into three groups
A investor wants to build an apartment building of 90 apartments. The MARR is 8%. The construction of the building will last 3 years with distributed cost for a total amount of 9 million $. The land cost 10 million $. What is the actualised payback p..
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned that your rival is retiring and closing his station in two weeks...
Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats ke..
How does game theory explain why strategic moves fluctuate? Some oligopolies use a form of implicit cooperation called price leadership, which is legal in the US. Why do you think these firms try to engage in this practice? And why does price leaders..
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerio’s cereal specifically). how does an increase in price for this good aff..
Compute the equilibrium level of income for the open economy aggregate expenditure model.
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
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