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Q. Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude thata. Butterflies are a negative externality for Billy and Sammy.b. Denise will set up the butterfly garden without any help from her free-rider neighbors.c. If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.d. Denise'll not have one, if Billy refuses to contribute to the butterfly gardene. Denise'll set it up, if Billy and Sammy contribute the amounts at which they value the butterfly garden,
The cause and effect on how and why there was a government shut down a month ago.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.
One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.
The fact that a percentage of the interest income paid by one corporation is excluded from taxable income has encouraged firms to use more debt financing relative to equity financing.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
Suppose that the only input used in the generation of solar energy is sunlight
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
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