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a) Explain how marginal control costs are equalised across firms under a transferable pollution permit system (also known as an emissions trading scheme) using a diagram to illustrate your answer.
b) What advantage does the equalisation of marginal control costs give this system over command and control methods of controlling pollution?
If the real interest rate is 7% and in?ation is 3%, what is the present value of a three year coupon bond that has a face value of $1,000 and a coupon rate of 5%?
If Projects B and G are mutually exclusive, explain how would that affect your overall answers. That is, which projects would you accept in spending the $80,000.
Which is more economical, a plant with a payroll of $400 a week, with $100 of overhead, and with an output of 100 units per week, or a plant with a payroll of $80,000 a week, an overhead of $100,000 a week, and an output of 50,000 units per week? How..
If passengers can in effect sell their confirmed reservations when a seat shortage arises, why can't passengers sell their right to land at a crowded airport when a shortage of landing slots arises?
Certainly there is a market for violent gaming, but I wonder if there is an ethical line that companies chose not to cross. For example, there are presently several games on the market that allow players to rape women. And then there is the issue of ..
Oligopolists face interdependent profits because. Actions taken by oligopolists to plan for and react to actions of rival firms represent. Which of the following is not an implication of oligopoly interdependence:
An accident occured and an individual loses a leg. It lowers the individual's utility at each level of income but increases his/her marginal utility. Show diagrammatically the utility functions before and after the accident.
Maximizing profit for an economist is:
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $42,000 per year. The store is located on prime real estate in a college town. What is the o..
Annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption, investment, government spending, exports and imports. Estimate changes in economic growth and in the component shares.
There is an intimate connection between politics and economics, and different systems of the two can only exist side-by-side in certain pairings. For instance, says Friedman, a society which is (economically) socialist cannot also be (politically) de..
Give an example of how an organization may use household data and individual data as part of their CRM strategy. How would these data sets affect their marketing strategy?
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