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A paper mill discharges gunk that causes damage of $200 to the fishermen's business. The pollution damage can be eliminated in one of two ways: the mill can install a filter at cost $300 or fishermen can install a water treatment plant at cost $100. a) Identify the efficient outcome. Assume the fishermen have property right to no Pollution (and the property right is protected by compensatory damages) b) Construct a game matrix to illustrate the interaction between the factory and the resident. c) Suppose first that it is prohibitively expensive for the mill and fishermen to negotiate. What will the outcomes? d) Suppose instead that the mill and fishermen can bargain costlessly. What will the outcomes be? Note: Apply the Nash bargaining solution where any gain from a bargaining is shared evenly between parties.
What might shift the aggregate-demand curve to the left Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
As Malcolm Gladwell points out in his article "High Prices," increases in drug spending are more the result of increases in drug utilization then in increases in drug prices. Why is this relevant to the debate over whether something should be done..
What things impact the value of the dollar Does anyone know why the Chinese Yuan remains very weak against most currencies and thus allows them to export so much Is it fair that the Yuan is made weak against other currencies
Discuss the implication to Economic Efficiency of an economy operating at point and what would it take for the economy to operate at point Z?
In short run, assume that all the costs [except film rental and concessions] at a theater are fixed, and that each theater can seat five hundred people per day, no more.
Draw in the line showing the equilibrium-relative commodity price in isolation in each nation.
Workers are compensated by firms with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000 workers at one steel plant were paid $20 per hour
Vera is an impoverished graduate student who has only $100 a month to spend on fodd. She has read in a government publication that she can assure an adequate diet by eating only peanut butter and carrots in the fixed ratio
What is the most important factor leading to rising health care costs in the United States since 1980? a)The increased use of expensive medical technology b)Teh aging U.S. Population
A, B, and C have the following preferences for fruits: A: apples > bananas > peaches > pineapples B: bananas > apples > pineapples > peaches C: apples > pineapples > peaches > bananas Use the Borda Count method to determine the most preferred fruit.
Use supply and demand analysis to describe why equilibrium price of apples will increase and the equilibrium quantity will fall if an excise tax is levied on apples.
Defines the price of the imported good as the foreign market price before it is loaded into the ship, train, or plane for shipment to the importing country.
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