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Two firms, A and B, each currently emit 100 tons of pollution into the air. To reduce the pollution from now on EPA will require a pollution permit for each ton of pollution emitted into the air. EPA limits pollution to 60 tons, giving each firm 30 pollution permits. It costs Firm A $100 for each ton of pollution that it eliminates before it is emitted into the air, and it costs Firm B $50 for each ton of pollution that it eliminates before it is emitted into the air. What is the total cost of current production if EPA orders the firms to reduce pollution to 60 tons? If the two firms can buy or sell pollution permits from each other, assume a price of $75 per permit is negotiated, what is the potential cost to each firm if the existing production is maintained?
An economy has full-employment output, Yn, of 6000. Government purchases, G, are 1200. Consumption is C = 3600-2000r + 0.10Y and investment is I = 12-400r, Y is output and r is the real interest rate. Discover an equation relating national saving, S,..
Why do producers have more interest in government regulations than consumers do? Contrast and Compare the public-interest and special-interest theories of economic regulation. What is the “capture theory” of regulation?
What effects would joining a MCO have on your clinic regarding staffing, patient volume, and financial stability and what policies and procedures should be used by the MCOs to reduce costs for clientele?
The following equation represents the weekly demand that a local theater faces. Qd = 2000 - 25 P + 2 A, where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week.
consider two neighboring countries islands called c and f. they each have 4 million labor hours available that they
budget deficits are sometimes useful to spur consumption and thus encourage investment in business plant and equipment
Consider an investment portfolio of $50,000 in stock A and $50,000 in stock B. The expected value of A is 9.5% and B is 6%. The variance of A is 13% and the variance of B is 8%.
Government Purchases, Measurement of Unemployment and Consumer Spending - Short summary pertaining to the economy's stage in the business cycle.
What are the primary differences between industrial users and home users of electricity that allow the utilities to discriminate between the two markets in terms of price? How do we compensate for these differences in order to improve the "common ..
suppose there are two firms a and b in the market and the market demeaned is p50-q where p is the price per unit and q
Implicit and explicit costs are different in that: implicit costs are opportunity costs; explicit costs are not. explicit costs are opportunity costs; implicit costs are not. the latter refer to non-expenditure costs and the former to monetary pay..
Keeping the Law of Diminishing Returns in mind, comment on the quality of teaching and learning that occur when a resident successively works her 60th, 70th, 80th and 90th hours in a week.
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