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Discuss which model that best describes the historical economic development in The Bahamas. Which approach would you recommend to best ensure sustainable development in The Bahamas?
Elm Industries receives profits from polluting according to the formula: pi =10Q−Q^2 where Q = pollution emitted (in tons), and profits are measured in dollars. The damages associated with pollution from this facility are estimated to be: D=Q^2 +2Q. ..
Consider the basic Rothschild-Stiglitz model with asymmetric information and two types on consumers. A policymaker who has taken this class suggests that is might be beneficial to impose a flat tax on healthy people and distribute the tax revenue to ..
How do Ponzi schemes and pyramid schemes differ? How are they similar? Why are successful white-collar criminals such as Madoff able to carry out their schemes for so long when similar types of fraud often collapse at an early stage? What should be d..
Long-Term Investment Decisions Due Week 9 and worth 300 points Assume that the low-calorie microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions.
The process of specialization and exchange allows a producer to become a. proficient in one or a few areas of production b. proficient in all areas of production c. self-sufficient d. independent
Firms hurt by cheap imports typically argue that restricting trade will save U.S. jobs. What’s wrong with this argument? Are there ever any reasons to support such trade restrictions?
A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winer heating bill is estimated to be $1,000. If the homeowne..
Pick the last 2 business cycles as identified by the National Bureau of Economic Research. Describe the behavior of the components of aggregate demand during each of these cycles.
The principle of utility involves maximizing happiness as a desirable outcome of decisions. Although it does not get directly said, there is an inverse intention to minimize the undesirable outcome of disaster. Utilitarian decisions are directed towa..
A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, Compute a fair price of this stock.
Assume that the world market for producing radios is monopolistically competitive. Suppose that the price of a typical radio is $25. Why is this market likely to be characterized by two-way trade? If you concluded that radios will continue to be prod..
Two identical firms compete in competition (Cournot competition) in the same market where the inverse demand is P(Q) = 100 − Q. The constant marginal cost of both firms is 10. Find the best response function for each firm. What is the Cournot (simult..
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