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Graphically show the impacts of a carbon tax on electricity producers. Using another graph, illustrate how a tax compares to a uniform air quality standard that imposes fees on electricity producers in non-compliance. Briefly discuss which policy is more efficient and justify your answer.
What would be the socially optimal number of firms if F = 0? What does this suggest about the likelihood of F = 0? What is the role of F in determining the optimum number of firms? The delivery cost?
Suppose there are two consumers of a public good, Barbie (B) and Ken (K). Their demand curves for the good are given by: Graph Barbie’s demand curve. What is the slope? Graph Ken’s demand curve. What is the slope?
Explain how sellers can add value when approaching potential customers, especially if they are satisfied with the value and relationship they have with their current seller.
Compute by how much monetary policymakers must change the nominal money supply for the expectations of firms and workers to be realized.
If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..
Consider a new per-worker employment tax on workers (where previously there was no tax). outline the consequences of this tax on the local labor market. use appropriate, clear and well labeled diagrams.
Under the welfare system depicted in the diagram above, the marginal wage for a welfare recipient is: The reservation wage will decrease for an individual if:
What are soft laws? What are the advantages and disadvantages of soft laws? Why are soft laws sometimes the outcome of negotiations on global environmental regimes?
A monopoly is a market in which one firm sells a good or service that has no close substitutes and a barrier blocks the entry of new firms. In addition, as noted in “Are Microsoft’s Prices Too High?", Microsoft’s prices are too high in the sense that..
Consider a hypothetical economy without government or international trade. Households spend $0.90 of each additional dollar they earn and save the remaining $0.10. Even when they have no income, they spend $100 in total. Calculate the current equilib..
Indicate whether each of the following involves an upward or downward shift in the long run average cost curve or, instead, involves a leftward or rightward movement along a given curve. Also indicate whether each will have an increasing, decreasing,..
Your friend needs to write a massive term paper over the next three weeks, but the NBA playoffs are heating up. If she concentrates, she can write the term paper in a week. Suppose your friend if time-inconsistent and naive, with β =1/2 and δ = 1. Wh..
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