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The 2000-2001 California energy crisis produced brownouts, utility company bankruptcies, and worries about high prices. The California electric power regulatory program imposed price ceilings on electricity sold to consumers. The following exhibit describes the California situation with PS as the price ceiling. Answer the following questions referring to this exhibit.
a. What was the loss imposed on consumers by this price ceiling?
b. What was the loss imposed on producers by this price ceiling?
c. What was the total loss imposed on California by this price ceiling?
d. Using this exhibit, explain the brownouts in California.
e. What would have to be true for consumers to support market set prices? Use the exhibit to explain why there might not be support among consumers for raising prices.
Its properties are tm = 42?C, M = 350.6, logKow = 5.11, and, Kaw = 4.16 × 10-3 atm P/mol. Estimate its vapor pressure using only the given data
Hillary can invest her family savings in two assets: riskless treasury bills or a risky vacation home real estate project on an Arkansas river. The expected return on treasury bills is 4 percent with a standard deviation of zero.
Roughly speaking, what fraction of U.S. labor works in factories? In service businesses? In government?
suppose the own price elasticity of market demand for retail gasoline is -0.8 the rothschild index is 0.7 and a typical
Various financial data for 2007 and 2008 follow. Calculate the total productivity measure and the partial measures for labor,capital, and raw materials for this company for both years.
What is the expected NPV of the product?
Explain what moral hazard is and why and how deposit insurance and the too-big-to-fail doctrine induce a moral hazard problem.
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of $1200 after the machine's useful life of 8 years. On the other hand, leasing requires an ann..
Give a numerical example to show that a monopolist's marginal revenue can be upward sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue. Think of a graphic that shows the possibility of declining a..
A firm must decide whether to provide their salespeople with firm-owned cars or to pay a mileage allowance for their own cars. New cars would cost about $28,000 each and could be resold 4 years later for about $11,000 each.
Describe the motivational practices used by the organization to promote better strategy execution. Include some illustrative examples in your response.
A random sample of 25 employees of a local company has been measured. A 95% confidence interval estimate for the mean systolic blood pressure for all company employees is 123 to 139. Which statements is valid.
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