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5. Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard. To meet the standard, 30 units of SO2 must be abated in total. The two firms face the following abatement costs:MAC1=16+0.5A1MAC2=10+2.5A2 where costs are measured in thousands of dollars.
a. Prove that a uniform standard will not meet the cost effectiveness criterion.b. Determine how the abatement levels should be reallocated across the two firms to minimize costs.
The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.
Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over 20 years.
Intra-industry trade comprise countries exporting and importing the same or very similar goods. Why would countries export and import the same or similar products.
Elucidate how would this technological change affect the price elasticity of demand for natural gas
You're the manager of copies are us. The only copy store in town, the carbon copy, recently got bids on adding a colour copier.
Explain how much should the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
Describe some theories or explanations of why the crime rate fell in the 1990. Murders are now on the rise again.
Assume the utility function is not the square root of income but instead, utility is linear in income.
Get price level stability under these conditions the government should:
Explain how the economy affects the success of the auto industry. Economic influences that can affect the industry in a negative way.
During the Great Depression, federal government swung into action to help farmers. In 1933, it established a system of price support for several agricultural products.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
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