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Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but no problem outside that area. The total effect of pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes inland prices and/or wages filly reflect the benefits pf cleaning up pollution? Why or why not
Under Illustrate what conditions are likely to be internalized without the necessity of government intervention
Investment project R is estimated to have a net present value of $450,000 at a discounting factor of 11% and a net present value of $50,000 at a discounting factor of 13%.
A used car dealer in Las Cruces placed the following advertisement: What is the price of the car if the interest rate is 12% per year compounded monthly? If financing is done at 12% APR, what would be the equivalent uniform monthly payment?
Describe a decision-making scenario using your business experience, personal decision making or cited journal article; include an example of the decision-making process, describe the risk, and whether persuasion was used.
Can you please explain how I obtain the profit maximizing rate of output? I also do not understand how if a price of the ties were to fall from $19 to $15, how many ties would be produced. Lastly, how do you understand at what price a firm should shu..
Net Worth on a bank's balance sheet is
When demand is elastic, an increase in price causes quantity demanded to______________ and total revenue to__________. When demand is inelastic, a decrease in price causes quantity demanded to ____________and total revenue to__________. If price rise..
If a producer (who has no impact on prices) is correctly profit maximizing and making a profit, what must be true about average vs marginal cost at the current quantity being produced?
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
Role taxpayer: taxpayers are consumers, workers, business owners, and investors. is it important for government to understand the incentive effects of each kind of tax used to raise revenue?
For each of the following indicate what market structure best represents the good or service and briefly outline 2 characteristics of each market structure.
Do opportunity cost play a role in people's decision to specialize in certain activities. What describe the price at which trade takes place.
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