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Question: Rather than use performance standards or a tax, the EPA decides to establish a market in pollution rights. They set the supply of pollution permits at ES =130 (in order to achieve the desired reduction of 120 tons). Derive each firm's demand for pollution rights, the market demand curve, and the equilibrium price. How much would each firm pollute and how much would they abate? Draw a graph of the market equilibrium.
Ace will pay 7% interest but will make no payments for 4 years, at which time the entire amount will be due. How large will Ace's payment be?
Jane is named head of business strategy for a given business. The price elasticity of demand for the products (or services) sold by this business is 0.7.
Show that this in expectation decreases the firm's value, and explain why, in spite of that, the owners of the company would want to undertake the project.
Outward Shift in the demand for capital occurs in an economic boom when increased construction of plants, buildings and other capital-intensive business activities requires huge outlays of investment. In this scenario, interest rates tend to rise alo..
Which of the following would result in a short-run increase in the wage rate in a com- petitive labor market?
What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123.
Using the market for reserves, describe how the Fed maintains the target range for the federal funds rate.
Firm A currently dumps 247 tons of chemicals into the local river. Firm B currently dumps 246 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of p..
(1) Did the Bayh-Dole Act introduce the patenting and licensing of federally sponsored innovations in universities and national labs? (If no, briefly explain.)
During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $300?
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
Suppose the Home firm is considering whether to enter the Foreign market. Assume that the Home firm has the following costs and demand.
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