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Consider a rational producer who maximizes profits. He sells his output at a fixed market price. His production also inflicts damage on the environment and this imposes an additional cost on his neighbours.
a) Assume his neighbours and the polluter can bargain on the level of output. In the context of Coase theorem, and with a help of carefully labeled diagrams discuss (I) a situation where the polluter holds property rights to the environment
(ii) a situation where the neighbours of the polluter hold property rights to the environment. In both cases comment on the maximum and minimum size of respective bribes/payments and on the level of output
Besides raising taxes and issuing debt, the U.S. government (Treasury Department) can also secure funds by borrowing directly from the FED.
Be able to graph and explain side by side market/firm graphs detailing the evolution of the elimination of both profit and loss with changes in demand.
Other things being equal, woudl this tend to increase planned expenditure in the United States by exactly, more than, or less than $50,000? Would it shift the aggregate demand curve to the right, the left or not at all? Explain in detail.
You have been hired as a consultant by your local mayor to look at the various market structures. Your role is to provide analysis and answers to these important questions that will help the mayor understand the structures of many of the businesses i..
The table below provides information regarding four companies and the corresponding products/services. Identify and briefly discuss the appropriate 'strategy
After looking at and researching the sites as a marketer and as a customer. Which one in your view does better marketing its products
An ice cream company has hired two sales persons to run two ice cream stores on a beach. These two employees will receive a fixed salary regardless of the number of ice creams that they sell and they have to charge the same price set by the company. ..
Suppose that the manager of a firm operating in perfectly competitive market has estimated the firm’s average variable cost function to be AVC=4000-5Q+0.002Q 2 Total fixed cost is $62500. The firm across the street is charging $1000 per unit that the..
Draw and solve the Cash Flow Diagram for Annual Value “A”. This is a 10 year Cash Flow, and interest rate is a compounded 7%). $10,000.00 is Invested Today for a piece of testing equipment. $2000.00 is Earned as Annual Income from end of years 1-10 t..
What is equilibrium price, and how do I find it on a graph?
Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the equilibrium quantity of laptops?
Is the growth of small businesses important to the us economy? Why?
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