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If a fixed number of industrial polution permits are marketable, then we should just sell the right to smoke to the highest bidders rather than ban smoking outright in many cities, towns, business outlets, restaurants, and bars. It would reduce the economic losses and make the market more efficient.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
A monopolist faces demand curve p = 11-Q , where Q is measured in thousands of units. Compute the firm's degree of monopoly power using the Lerner index?
Identify that a risk averse agent offered terms worse than actuarially fair will not choose to insure fully.
Find the velocity given that the market is in equilibrium. MD1 is the relevant curve and it is given that the real GDP is 30,000.
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input?
Explain how would the subsiquent changes in price affect total revenue. What are the major determinants of price elasticity of demand.
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
Assume the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase.
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been $100 rather than $60, and (2) total variable cost had been $10 less at each level of output.
A nation has a lower inflation rate than all other nations, It has more rapid economic growth.
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