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In addition to prohibiting development, reserving land for open space converts a private good (use of the land for commercial development purposes) into a public good (open access to the land for general public enjoyment). One way a society can reserve land for open space for the benefit of all is through zoning - prohibiting development in certain areas. As an alternative, a government may establish a budget category, funded by tax collections, for purchasing lands for public use. Is one approach more likely than the other to lead to a social optimum (i.e., be most consistent with consumer preferences for public and private goods)? What factors or conditions might favor one approach over another?
What general economic reasons might there be for a hospital merger to generate an increase in total profit? Would the hospitals' customers be likely to benefit from the merger? Under what circumstances? Explain carefully.
Examine the private enterprise systems, drivers of change on the system, ethical and social responsibilities of business, and the requirements for success in today's business environment.
Suppose that the probability that a used bike is a lemon (low quality) is 'p' and the probability that a used bike is a plum (high quality) is '1-p'. If a buyer is willing to pay $H for a plum used bike and $L for a lemon used bike,
Pick a good or service. Distinguish between the short-run and the long-run production and cost function for that good or service. Discuss how price plays a role in short-run and the long-run decisions and how managers are likely to respond in each..
From time to time it has been proposed that a law or constitutional amendment be passed that will force the federal government to balance its budget every year. How would such a requirement affect the conduct of discretionary fiscal policy? Automa..
Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline.
Use the DD-AA diagram to analyze the effects of a temporary tax cut on income and the current account.
The total cost function for a noncompetitive firm is given as TC = 2Q3:- 25Q2:+ 150Q + 400 Assume the market demand function is P = 5000 - 30Q + 0.2Q2: Q 62.5- Find the shut-down price
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on them. She currently buys 8 units of Alpha and 12 units of Beta. The marginal utility of Alpha is 40, and the marginal utility of Beta is 2..
write a two to three 2-3 page paper in which youidentify and discuss three 3 externalities which can either be positive
Examine the underlying historical and economic reasons behind the quest for alternatives to incarcerating offenders in jails and prisons.
At its profit-maximizing output, a pure nondiscriminating monopolist achieves: neither productive efficiency nor allocative efficiency. both productive efficiency and allocative efficiency. productive efficiency but not allocative efficiency.
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