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Economics Discussion
Watch this video:
https://youtu.be/ljrBEdg-QU4
In it, you'll see that one way to correct the externality is by Betty giving Carl some chips.
The video suggests that Carl is harmed by Betty's crunching; were we to stop Betty's crunching completely, that would help Carl. Would it impose any harm on Betty? If so, what solutions could we devise to compensate Betty?
It seems as if there is only one solution: impose a tax on Betty to compensate Carl. We might, though, consider alternative arrangements that result in Betty and Carl feeling satisfied besides taxing Betty (in fact, one possibility is to tax Carl). Can you think of some alternative solutions?
What price would you bid if you want to maximize the expected value of the contribution from this contract? Defend your answers with discussion, making any assumptions you feel are reasonable and/or are supported by the information provided.
Tariffs and quotas can be used to achieve similar ends. In fact, for any given quota, there is an equivalent tariff that will limit imports to exactly the same amount. Still, there are differences between quotas and tariffs.
Sell your collection to maximize your NPV
a large electronics company is organized into mainly profit-center divisions. the components division and the consumer
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When the demand of a product increases ______? What important concept is illustrated with the Production Possibilities Frontier (PPF)? Everything else held constant, when the price of a product increases _______?
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