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The supply of paper is given by the following equation:
QS = 5,000P where QS is tons supplied per year and P is price / ton. Demand is expressed by QD = 400,000 - 1,000P where QD is tons demanded per year.
Because of the pollution associated with paper production, there are marginal external costs of $20 associated with each ton of paper. Assume that paper is sold in a competitive market,
• what is the market price?
• At that cost how many tons of paper will be produced every year?
• Elucidate is the efficient yearly output of paper and how can this be achieved?
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.
Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium.
The Australian government administers two programs that affect the market for cigarettes
Calculate price, quantity and social surplus for the initial state and each policy.
Elucidate an example of a microeconomic and macroeconomic phenomenon. Would you give an example of a microeconomic decision you have made at home or work.
Elucidate the value of a trucker's life disguised by compensating discrepancy among the two firms.
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
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