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Assume that the product depicted below generates external costs in consumption of $4 per unit.
What is the socially optimal output?
By how much does the market overproduce this good?
Find (algebraically) the points where the MC function intercepts the AVC and the ATC functions. (Hint: at one interception point MC = AVC and at the other MC = ATC)
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
Explain how do you plan to use this while making decisions about public expenditures.
The Conference Board publishes an index of Consumer Confidence that is good measure of the non price determinant of demand, customer expectations.
Alfred chan decided to buy an old duplex as an investment. After looking for several months, he found a desirable duplex that could be bought for $300,000 cash. He decided that he would rent bought sides of the duplex, and determined that the tota..
The marginal external expenses associated with air pollution increases with the yearly output of a polluting industry.
Case study: rent ceilings in New York City. Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibri..
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
Carlton Corporation, a manufacturer of electronic equipment, determine the following relation between its marginal cost of production output:
Currently one argument against the continuation of state regulation of insurance and one argument.
Obtain annual data for a series of economic indicators from the ABS National accounts database. The economic indicators you are required to research are annual growth rate for GDP
Elucidate the difference between a monopoly and an oligopoly, and a cartel. Provide an example of a monopoly, an oligopoly, and a cartel. Describe the welfare effects of monopolies and oligopolies.
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