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Externalities. Consider the example of the perfectly competitive steel firm from class. The firm takes the market price p = $35 (per unit of steel) as given and chooses quantity q (units of steel) to maximize its profits. The firm has increasing (private) marginal costs given by the equation MC = 5q. The residents in a nearby town suffer damages from the firm’s emissions of sulfur dioxide. A researcher at a local university has estimated their marginal damages to be given by the equation MD = 2q.
(c) On a single graph, draw both of these outcomes along with the curves for private marginal cost, marginal damages, social marginal cost, and marginal benefits. In the graph, shade the area that corresponds to deadweight loss.
For 5 years you have owned and operated a small company, ABC Desks, that designs and manufactures high-end custom wooden desks. The business is incorporated and pays state and federal taxes separate from your personal income. Develop an Income Statem..
At the beginning of the growing? season, Cecil planted 17 acres of wheat at a cost of? $5,057. Now it is harvest time. Each acre will produce 48 bushels of? wheat, and wheat sells for ?$4.75 per bushel. What does? cost-benefit analysis suggest that C..
According to the Fed, in August 2008 the money multiplier was 1.31, reserves were $44billion, and currency in circulation was 1.31. What was the money supply?
Fiscal policy refers to change in
Monopolistic competitition differs from perfect competition primary because in monopolistic competition,
Let the investment described in question 6 be option A and suppose the company could instead purchase some more expensive equipment with an initial cost of $40,000 (call this option B) that would lower the annual operating costs to $5,000. Assume ann..
Define the concepts of interconnectedness and complexity as it relates to urban planning. Why are these two concepts so important to urban planning? Explain what Woodrow Wilson (1887) meant when he claimed that politics and administration should be c..
If the cost of medical care increases by 40 percent, then, other things the same, the CPI is likely to increase by about
Describe the distinction between legislative requirements and professional standards. What part of the legislation provides details of how much income tax must be paid and what does it state?
Illustrate what cost as well as quantity will result once the patent expires and competition emerges in this market.
Discuss and describe the effect you have on this process when you visit the ATM to get some cash to pay for your late-night pizza.
q1. in 2011 company xyz had sales of 345620million net operating profit after taxes of 10250 million and employed 62650
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