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Almond growers in CA are very concerned. Normally, honey producers would keep their bees next to almond orchards, where the bees would gather nectar and pollinate the almond trees. Lately however, bee keepers have moved to Arizona where it is cheaper to operate. Without the bees, the almond trees had very low yields, so the cost of production rose and profits were down considerably.
a. Describe the externality in this situation.
b. What possible solution is suggested by the Coase Theorem?
c. Is this solution likely or unlikely to work out in this case? Why or why not?
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Illustrate what can you infer from this data about the rate of labor productivity growth in the US economy during this period.
Determine what effect on a country's current account balance is an increase in use of quotas expected to have? Would your answer change if other governments retaliate? If so, how?
How much more output each year will have to be produced in the world
A statistician from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results; then she quit. Unfortunately, some entries are missing because the toner was low in her printer. Use t..
Liabilities and net worth Check able deposits 5000 Stock shares 1000 If the balance sheet above was for the commerical bank system, rather than one bank, by how much could the supply of money increase.
SUPPOSE SOUTH kOREA CAN PRODUCE 100 COMPUTER CHIPS WITH 10 HOURS OF LABOR INPUT AND 50 BED LINENS WITH 6 HOURS OF LABOR INPUT. THE US CAN PRODUCE 100 COMPUTER CHIPS IN 8 HOURS OF LABOR INPUT AND 50 BED LINENS WITH 4 HOURS OF LABOR INPUT. 1. WHAT I..
Elucidate a monopoly which formed naturally or through vertical or horizontal mergers.
1) An important reason why economies at an early stage of development tend to operate inefficiently is a) they tend to be dominated by the agricultural sector, where productivity is usually low. b) they tend to have authoritarian governments that sti..
You are asked whether current antipoverty policy meets three generally accepted goals of helping, preserving work incentives, and minimizing cost and what changes you would favor and why.
California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses.
You are considering to save some money. Out of your yearly income you will deposit a fixed amount per semester at a nominal rate of 8 percent per year compounded each 6 months during 5 years.
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