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In the first years following the passage of the Clean Air Act in 1970, air pollution declined sharply, and there were important health benefits, including a decline in infant mortality. According to an article in the Economist magazine, however, recently some policymakers "worry that the EPA is constantly tightening restrictions on pollution, at ever higher cost to business but with diminishing returns in terms of public health."
a. Why might additional reductions in air pollution come at "ever higher cost"? What does the article mean that these reductions will result in "ever diminishing returns in terms of public health"?
b. How should the federal government decide whether further reductions in air pollution are needed? Source: "Soaring Emissions," Economist, June 2, 2011.
What happens to consumer surplus and what happens t o the economic profits earned by Widget Corp.?
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Is the real interest rate on this loan higher or lower than expected? Does the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose from this unexpectedly high inflation?
Firms 1 and 2 produce an identical product and serve the market described by the demand function P=100-Q, where Q=Q1+Q2. Firms compete by choosing their output levels. Firm 1's total cost function is TC(Q1)=100+20*Q1. Firm 2's total cost functi..
The TechEdge Corporation offers two forms of 4-year service contracts on its closed-loop water purification system used in the manufacture of semiconductor packages for microwave and high-speed digital devices. The Professional Plan has an initial..
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consider the market where there is product differentiation with two firms. the firms are choosing prices p1 and p2 and
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Does comparing the results of problems #28 and #29 lead you to believe that inflation is similar to the loss of income?
5.1 Know about and analyze the "great migration" of African-Americans from the south to the north to obtain better employment prospects in the 20th Century; 5.2 Appreciate and know how to analyze the role of immigration and the immigrant experience ..
develop a three- to four-page paper in which you present an overview of public budgeting. be sure toevaluate the
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