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The market for paper in a particular region has the supply and demand curves: QD = 160,000 - 2,000P QS = 40,000 + 2,000P, where Q is measured in hundred-pound lots, and P is price per hundred-pound lot. There is currently no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost associated with the paper production is given by the expression: MEC = 0.0002Q.
a. Sketch a diagram showing the costs or benefits to society of allowing the market to operate in an unregulated fashion.
Should there be greater government regulation with respect to selling to vulnerable consumers? Be sure to support your discussion question response with evidence from online references.
Now suppose that nominal GDP in 2003 totals $8546 billion and rises to $13.1 trillion ten years later for the United States. The GDP deflator for 2003 is 1.85 and for 2013 is 2.75, in what year is real GDP greater? By how much? How did you arrive at ..
In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. c. Determine the dominant strategy for SAMI. d. If the two firms can enter into a binding and enforceable agreement, determine the strategy that each fi..
Draw a pair of utility curves, one for X and one for Y, and label the positions immediately after the innovation (before any migration) as x for city X and y for city Y. Use arrows along the curves to indicate that migration that follows.
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Suppose Paula consumes both 87 and 89 octane gasoline. Assume that before the recent price increases, Paula paid $3.00/gallon for 87 octane and $3.10/gallon for 89 octane. The price of each grade of gasoline has now risen by exactly 65 cents. Make th..
Illustrate what is the macroeconomic relationship with the article, "Squaring the Economic Circle" by Art Buchwald.
Why did the federal government until recently put restrictions on interstate banking? Did those restrictions increase the stability of the banking system? What are some events that have changed the ability of the banks in U.S. to branch between state..
Why are vision and mission statements important to strategic development? How might leaders and managers view and use vision and mission statements differently?
Where one the theoretical Production Possibility Frontier (PPF) do you think the US was on September 10, 2001? What happened thereafter? Support your answer with evidence such as unemployment rates, labor participation rates and information on invest..
What happens to the money supply, interest rates, investment spending and GDP. Describe the impact of rational self-interest on each.
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