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Suppose two utilities, People's Electric and Municipal Energy, each produce 100 tons of pollution per year. The government has a goal of eliminating half the pollution, and in turn, provides 50 pollution permits to each utility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to trade permits. Suppose the cost of eliminating one ton of pollution for People's Electric is $500 and the cost of eliminating a ton of pollution for Municipal Energy is $450. What is the total cost of each utility eliminating 50 tons of pollution?
For this question, note that when computing percentage changes, the denominator should be the initial number. How would you compute the inflation rate from December 2008 to December 2009?
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
Given the following information about a closed oil-rich economy which does not impose any tax on its citizens to finance its expenditure, you are required to derive mathematically and explain using graphs the impact of a change in each of the key ..
Studies indicate that the price elasticity of demand for cigarettes is about -0.4.If a pack of cigarettes currently costs $2.0 and the government wants to reduce smoking by 20%, by how much should it increase the price?
How can we measure our nation's economic performance? What are the two different approaches? What factors make it difficult to calculate GDP accurately? How does GDP fail to measure economic welfare accurately?
What do we mean by regulartory capital in the context of banking?
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
Explain why is the marginal cost of inputs more important than the average cost of inputs.
Why may a food shop charge higher prices than supermarkets for ‘essential items' and yet very similar prices for delicatessen items?
By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. Which of the following is an attribute of specialization?
How is consumer surplus defined and how does it relate to free services such as internet platforms like Google.
Consider the challenge of supplying all the merchandise to a bigbox store such as Target, or some other challenge in supply and demand you have encountered.
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