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Policy analysts in the Department of Natural Resources have estimated that the marginal benefits from water pollution abatement are given by the function MB ¼ 0.90 À 0.03A, where A is a measure of the abatement intensity. Industry experts have estimated that the marginal cost of abatement activity is MC = 0.30 + 0.09A.
a. Determine the optimal level of abatement activity.
b. Explain what happens when new technology reduces the marginal cost of abatement to MC = 0.25 + 0.06A.
Presently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply.
What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.
Explain how high should a monopoly set its prices in order to maximize profits. When you post a response to this question, place it in the context of one of the following examples.
A German mutual fund sells Euros to a U.S. bank for $20,000. The mutual fund then uses these dollars to purchase a bond issued by United Express, a U.S. delivery company. As a result of these two transactions, what happened to U.S. net capital outflo..
If you were to learn that gatorade introduced new favors in 2010, how should that information affect your calculation to the inflation rate.
Which of the following might explain why the government would create a price ceiling for a certain good?
When a buyer's willingness to pay for a good is equal to the price of the good, the
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The price elasticity of demand for imported mineral water is estimated to be ?0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign mineral water, causing its price to rise by 20 percent. What is th..
a marketing order for oranges has a fixed total supply of q1000 crates a month. demand in the fresh orange market is qf
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