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Disposing of coffee pods is an example of negative externality. Left unregulated the equilibrium price is $5 and quantity is 5.
The efficient price is $6 and the efficient quantity is 4.
Suppose the government imposed a $2 tax. This would make equilibrium price $6 and equilibrium quantity 4. There is deadweight loss and surplus
A random sample of 10 examination papers in a course, which was given on a pass or fail basis, showed the following
1. if you are the chief economist of a country experiencing high unemployment and flat gdp what macroeconomic policies
The Shakespeare Theatre has a monopoly on productions of Othello in Washington, DC. They hire you to analyze whether o?ering a “young adult” discount could help increase pro?ts. After some economic analysis, you discover that the demand curve for Oth..
Charles has decided to open a lawn-mowing company. To do so, he purchases mowing equipment for $5,000, buys gasoline ($2.30 in gas is required to mow each yard), and pays a helper $10.00 per yard. Prior to opening the lawn company, Charles earned $8,..
Suppose the marginal revenue (MR) function of a monopolist is 5000-0.25Q, what is the profit maximizing price and quantity? Show or identify the demand, marginal revenue and total revenue curves. State the maximum amount of total revenue—in US dollar..
Come up with a scenario (other than those brought up in class) in which it makes sense to talk about probability in the Frequentist sense.
Using the graph below, identify the different stages of the business cycle. Assume that A, B, and C represent consecutive years.
The US government should be the catalyst for innovations in intermodal transportation. Industry, in a free market economy,
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers.
What amount should the estate receive for lost income and benefits using an interest rate of 8%?
In the city of Growville, the equilibrium employment is 100,000 workers, and the equilibrium wage is $80 per day. The elasticity of demand for labor is 1.0 (in absolute value) and the elasticity of supply of labor is 4.0. The employment multiplier is..
Which of the following is the most accurate statement? Americans are very willing to buy domestically produced goods, even if there are more expensive than imported goods. We import more foreign goods than we did 40 years ago, but the merchandise imp..
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