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Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of the goods that we buy. For instance, since coal fire power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not adequately high enough. Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality base, price?
Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725.
Which of the following is an example of "supply-side economics"? A. an investment tax credit B. a one-time tax rebate to low-income families C. a new Medicare drug benefit for the elderly D. an increase in Social Security benefits E. all of the above
1. cold case inc. produces beverage containers used by fast food franchises. this is a perfectly competitive market.
The physical relationship between a firms input use and output production is called the 5. A firms total revenue (input costs + the opportunity costs of the owners capital + any other inputs supplied by the firms owner) equals that firms 6. At the..
1. assume that the market for computers begins in equilibrium. then there is a decrease in a price of pentium
Buyer behavior is at the core of marketing. All marketing programs need to begin with an understanding of why and how consumers buy what they do. If no one purchases a company's product or service, it will quickly go out of business.
riggs corp. is planning to spend 650000 on a new marketing campaign. they believe that this will result in additional
The inverse demand function for natural gas in Altoona is P(q) = 11 - Q. The Altoona market has a single natural monopoly producer with a total cost function of C(Q) = 5Q - 0.005Q2.The public utilities commission is thi..
Using the production function shown above, compute real GDP for each case and capital is constant but labour is increasing. What property of the production function is displayed? Explain.
The variables in the model with particular attention paid to whether consumer spending will increase, job growth will occur, and wages will rise.
part a use the first order conditions for profit maximisation to show that a monopolist will never produce on the
Suppose Blanca would prefer a certain income of $20,000 to the expected value of the gamble. Explain her preference toward risk by drawing a graph.
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