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Cost function C(q) = 10 + 10q + q^2 where q is the quantity of laundry services provided.
a. If the price of laundry service is 50 units, how much is the optimal quantity of laundry services to maximize profit and what is the maximum profit that Acme Laundry can achieve?
b. The government noticed that laundry services led to increased water pollution in the nearby river and decided to impose a specific tax of 2 units for every quantity of laundry services provided. How much is the optimal quantity of laundry services to maximize profit and what is the maximum profit that Acme Laundry can achieve with the tax?
What is the difference between a positive externality and a negative extarnality? Give three examples of negative externalities. What divergences arise between equilibrium output and efficient output when negative externalities are present?
Prepare a two to three page report titled "Environmental Sustainability in the European Union (EU)." The report should be based on the publicly available information that you obtained. You may use the report published by the European Commission.
Economic theory explains that markets generate wealth for individuals through the supply and demand for productive good/services. Does this help explain why you(studnet) are obtaining a college education?
Plot the goods in a graph with realness on the horizontal axis and (relative) exclusion cost on the vertical axis. (1) 1000 pounds of compacted scrap steel; (2) 1/2 ton of compacted scrap steel; (3) a mahogany tree in an inaccessible Central American..
If an option existed for an equivalent computer system to be purchased for $810 per month, paid at the end of each month in 2012, should they take this plan instead? Explain Answer!
Start-Up Industries is a new firm that has raised $320 million by selling shares of stock. Management plans to earn a 20% rate of return on equity, which is more than the 12% rate of return available on comparable-risk investments. What will be Start..
The demand schedule for JK Rowling's book is Q=3000-100P. The cost of having the book typeset is $10,000 and then the cost of printing each copy is $4. How many copies should JK Rowling print?
Assume that an individual has 80 hours per week that can be distributed between two normal products work and leave ( leisure ) . Draw a bid curve for an individual who can earn a maximum of £ 10,000 per week if the individual does not have any leave ..
What would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?
In the economy of Qonos in 2067 exports were $670, GDP was $8,652, imports were $1,281, investment was $1,544 and consumption was $2,325. What was Qonos's government spending in 2067?
lori is a student who teaches golf on the weekend and in a year earns $40,000 in fees after paying her taxes. How much did Lori save in 2009 and what is here wealth at the end of 2009?
What is the output of each firm if they collude to produce the monopoly output. What profit does each firm earn with such collusion.
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