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Question: Draw a standard supply and demand diagram for widgets, and indicate the equilibrium price and output.
a. Assuming that the production of widgets generates external costs, illustrate the effect of the producer being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output.
b. If instead of generating external costs, widget production generates external benefits, illustrate the effect of the producer being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
Which of the following is the primary key of the table below (you can assume the data are representative)?
ECA 276: Macroeconomic Analysis Calculate the real wage as determined by the price-setting equation and calculate the natural rate of unemployment - Illustrate the MR equilibrium and indicate the medium-run level of price as PMR.
What will happen tothe price of corn oil [3] How does theprice elasticity of demand for corn oil influencethe quantity-demanded of corn oil and theTotal Revenue earned by sellers of corn oil Explain, using economic terms
Four separate cases involving similar fact situations were consolidated as they presented the same constitutional question. In each case, police officers, detectives, or prosecuting attorney's took a defendant into custody and interrogated him in a p..
Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.
Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.
Assume as a professional economist debate about the wisdom of pursuing discretionary fiscal policy.
Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Justin to benefit from trade?
Explain why is the marginal cost of inputs more important than the average cost of inputs.
Consider a simple economy with only Robinson Crusoe, coconuts and leisure. He has utility U (c,l) = c^(1/2)*l and a production function C=L^(1/2), where c is the amount of coconuts he consumes, l is the amount of leisure he consumes, and L is the ..
A stock price is currently $55. The stock price is expected to increase by 20% or decrease by 15% every year. The risk-free rate is 7% per annum with continuous compounding. Using the two-step binomial tree, find the price of its two-year European..
the following model is a simplified version of the multiple regression model used by biddle and hamermesh 1990 to study
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