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When external costs are present
a. there is market failure
b. there is government failure
c. provate costs are greater than social costs
d. the market convoeys the full costs of production
What is cost-minimizing firm's expansion path will have vertical or horizontal segements.
Iran subsidizes gasoline, leading to a cost to consumers that is one-fifth the market cost.
Weekly inverse demand function is P=296-7Q, weekly inverse supply function is P=17+2Q. Find equilibrium price & quantity & solve for consumer & producers surplus. Then tax of $27 per equanimity is collected by supplier, solve for new consumer and sup..
Illustrate what is the likelihood all four of the selected flights arrive within 15 minutes of the scheduled time.
Explanation and Analysis Identify changes in market conditions and their effect on equilibrium price and quantity for the following events
De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination. U..
Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.
Explain how will the level of the velocity of money change if there is a permanent (one time) increase in the nominal interest rate, holding other factors constant.
q1. why do proponents of active policy recommend government intervention to close an expansionary gap? briefly
Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Create a graph similar to the one in Figure 4.2 of the textbook to show how ..
An irrigation return flow drain has sampling equipment that can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $14,000 to install and will have a useful life of 10 years. Annua..
Explain the origin of the Human Development Index. Explain the method of calculating Human Development Index.
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