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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:1. What two policies could you use to reduce the total amount of emissions?2. Why do you think they each would work?3. What would the benefits of each action be (besides emissions reduction)?4. What would the costs of each action be?5. How would you decide what was the best level of emission reduction?
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
What strategy was Avon pursuing until the mid-2000s What were the advantages of this strategy What were the disadvantages What changes did Andrea Jung make in Avon's strategy after 2005 What were thebenefits of these changes? Can you see any drawbac..
If the policy interest rate is near zero, what less conventional monetary policy tools might a central bank use to stimulate the economy? How do these tools work? In what way is central banking in the euro-zone area different from or similar to th..
Engineers for the Off Road Skateboard Company have determined that a 10% increase in all inputs will cause output to increase by 5%.
Illustrate what rate of return will the investor receive after the effect of inflation has been accounted for.
Illustrate what would happen to the demand for iPhones if consumer income rises by 10%. Be specific. Are iPhones a normal or an inferior good.
Explain when is equilibrium achieved in the foreign exchange market. Why is foreign exchange hedging beneficial to an organization.
Given the Demand curve for flyswatters Q = 500-50P, estimate the quantity demanded for the following prices.
Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on ..
Elucidate the elasticity of demand given the price and income combination.
Describe the price and quantity for maximum sales revenue and calculate the maximum revenue. Determine the price and quantity for minimum marginal costs and calculate the minimum marginal cost.
Illustrate what were some changes of the demand also supply fconditions that lead to the housing market bubble and collapse
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