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1. Describe the advantages and disadvantages of using taxes and bounties to regulate negative externalities.
2. Describe the advantages and disadvantages of allowing individuals to sue to regulate negative externalities.
A firm has $2,000,000 in sales, a Lerner index of 0.56, and a marginal cost of $35, and competes against 900 other firms in its relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over marg..
In order to restructure some of its debt, General Motors decided to pay off one of its short-term loans. If the company borrowed the money 1 year ago at an interest rate of 8% per year and the total cost of repaying the loan was $82 million, what was..
Trang has strictly convex indifference curves and is indifferent between the bundles (16, 2) and (2, 4) Use the definition of strict convexity to show that Trang prefers (9, 3) to (2, 4).
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
For what type of goods does law of one price hold quite well. Since PPP rarely holds at any point in time, is re any substantive meaning to terms overvalued or undervalued currency.
Suppose that Omar’s marginal utility for cups of coffee is constant at 2.5 until per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..
Identify whether all the elements of negligence are present and, if so, who or what entity will be sued successfully: The same patient, same history, same symptoms, has a different ER doctor who decides without examination that the patient has indige..
On the horizontal axis, K/L represents capital (K) per work hour (L). On the vertical axis, Y/L represents output (Y) per work hour (L). 10. Refer to Figure 1. The curve becomes flatter as the amount of capital per work hour increases because of a. i..
studies on the comparative work habits of the wealthy tell a different story. Research by professors Mark Aguiar. Explain which wealthy person has reservation wage.
What is the golden rule savings rate? How does it depend on the depreciation rate and the marginal product of captial? If the current savings rate is below the golden rule savings rate, should the economy increase the savings rate? Why?
Illustrate how fast will his production and consumption grow over time. Compute the consumption of the farmer in each of the first five years under plans.
Is it appropriate and ethical for employers to look into social networking sites of employees when they are not working? Argue that it is not appropriate and ethical..
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