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An example of a public good is a fireworks display. Nobody can be excluded from enjoying them, and this leads to a "free-rider" problem. But there are also an "economies of scale" aspect of it: watching a grand fireworks gives much more pleasure than just a few sparkles in a backyard - which leads to the fact that the best fireworks display are those produced by the government (maybe?).
a) What do you say to the idea of a city government imposing a tax on those who watch the fireworks? Give me two reasons to support it, and two reasons not to support it.
What will be the long-run equilibrium output level of the representative firm? could you plz solve first by description and then by calculation.
Develop a plan to propose taxes for your town, create a report in that what are the main factors that you will consider while selecting taxes to be imposed on Small Business Owners, Property Owners, and Individuals.
If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. The government decides to impose a quantity tax of t on good 1 and a quantity..
Due to the global economic slowdown, we were benefiting from relatively low oil prices. But because of the instability of the Middle East and the slowing.
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights. In the short run (..
Say you have the following set of hypotheses: Ho= There is no association between gender and candidate preference
Firms often face the problem of allocating an input in fixed supply among different products. Find theoptimal crude oil allocationfor the following example if the profit associated with square foot of fiber is cut to $0.375, while the profit asso..
While sitting in your office one evening, you begin to think about some of key microeconomic messages you want to communicate to Board. Find equilibrium quantity and price.
Kansas City is famous for its barbeque, but good barbeque comes at a cost. Pit masters have to bear the costs of producing slow-roasted pulled pork and beef briskets, and there is also an external cost: Accounting for the externality reduces the reve..
The bank cannot observe type, but knows that fraction 0.65 of borrowers are type A and the rest are type B. What is the competitive pooling interest rate?
Suppose government, attempting to prevent layoffs in import-competing industries, enacts trade restrictions. Explain why this action will make society worse off.
Indicate whether each of the following is counted in this year’s GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an “Investing for Dummies” book at Barnes and Noble. Your physical therapist receives $300 ..
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