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In the course of producing its output, this firm causes pollution. The government passes a law that requires the firm to stop polluting, and the firm discovers that it can prevent the pollution by hiring 0.2 workers for every worker that is producing output. Let N denote the amount of labor in production. The total employment at the firm is 1.2N. Cost of hiring a production worker includes both his wage and the wage of the worker who cleans after him, hence is 1.2w. Determine the effect of the pollution regulation on the firms profit-maximizing choice of labor input.
If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:
Describe the concept of strategic interaction in game theory and how it differs from single agent or player games (e.g. a monopoly or an individual maximizing their utility)
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is C(Q) = 10 +2Q +.5(Q^2). What level of output should you produce in the short run? What price should you charge in the short run? Will you m..
Explain how and why trade barriers have come down in recent decades. List the reasons why our trade deficit has grown so quickly since the mid-1990s. What can we do to help bring it down? Explain how international trade (exports and imports) affects ..
The world becomes a single market, some new approach must be developed to control the reach of the corporate oligopolies.
Discuss how communication plays a role in academic, professional, personal, and civic aspects of your life. Next, provide two (2) examples of how communication.
The slope of the Phillips curve: Draw a graph with a steep Phillips curve and a graph with a gently sloped Phillips curve. Explain how the two economies respond differently to a boom and to a slump. What are some factors that might influenced the slo..
If you owned a small business, would you develop a code of business conduct? If yes, what variables would you include?
What are the political and economic ramifications of investing a large part of the Social Security trust fund in the stock market, as has been recently proposed
Suppose an economic agent has a utility function U = Ln (R). Assume R is the return on investment and utility is the natural log of investment. If the investment is highly successful then the agent earns $10000. Calculate the expected utility of the ..
Business has only one social responsibility-to make profits (as long as it stays within the legal and moral rules of the game establised by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by..
Suppose we look in the newspaper and find the following rates: the rate on 1-year securities is 4.65%, on a similar 2-year security 6.24%, and a 3-year security 6.67%. If the unbiased expectations theory of the term structure of interest rates holds,..
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