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Faced with the oil crisis of the mid-1970s, the U.S. Congress instituted Corporate Average Fuel Economy (CAFE) standards. These have been increased over time, most recently in 2010 for the 2012-2016 model years. (For detail on the CAFÉ standards, visit the Web site of the National Highway Traffic Safety Administration, www.nhtsa.dot. gov/fuel-economy.) These standards are aimed at increasing the fuel economy, or miles per gallon (MPG), of automobiles.
a. Briefly describe the expected environmental effect of increasing the MPG of automobiles, holding all else constant.
b. Serious criticism has been lodged against the CAFE standards because U.S. automakers res- ponded by using more plastics in automobiles (to make the cars lighter in weight) to meet the more restrictive CAFE standards. Explain how the use of this technology affects your answer to part
(a). Are there any other relevant issues associated with this manufacturing decision?
Concept of diminishing marginal utility, discuss how excited you will be on the first day of your winning - What about your excitement on the 10th day?
Smoking creates negative consumption externality as the social cost of smoking is much higher than its private cost. Prop 86 of the Nov 7, 2006 election proposes to impose an additional tax of $2.60 per pack of cigarette. Does this tax increase the s..
american export-import shipping company operates a general cargo carrier service between new york and several western
Explain in one or two paragraphs why innovation is at the heart of creating and sustaining competitive advantage for firms. You need to mention the interrelationships between innovation, productivity, competitive advantage and value-creation.
1. john earned 100000 last year and paid 10000 in income taxes. mark earned 50000 last year and paid 5000 in income
Determine the short run average variable cost and the marginal cost functions. Determine the output level that minimizes short run average variable costs
a generous university benefactor has agreed to donate a large amount of money for student scholarships. the money can
The price elasticity of demand for fresh tomatoes has beenestimated to be -2.22. If a new insecticide and fertilizertreatment yields a 20percent increase in the nation's fresh tomatocrop, how will that affect total expenditures on fresh tomatoes
How would a libertarian like notice view poverty in then nitride states? How plausible do you find the libertarians’ preference for private charity over public assistance?
How the economy works and why the idea of limited resources is such a major concern in today's economy
Joe Brown’s dairy operates in a perfectly competitive marketplace. Joe’s machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages paid to the few workers he employs at the dairy and the grain he feeds to..
microeconomics is the study of economics at the individual or micro level. one of the most well known microeconomic
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