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Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality.
a. Over allocation of resources: (Click to select) Positive externality Negative externality.
b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block: (Click to select) Negative externality Positive externality.
c. Market demand curves are too far to the left (too low): (Click to select) Positive externality Negative externality.
d. Under allocation of resources: (Click to select) Positive externality Negative externality.
e. Water pollution from a factory forces neighbors to buy water purifiers: (Click to select) Negative externality Positive externality.
Suppose a gardener produces both tomatoes and squash in her garden. If the opportunity cost of one bushel of squash is 2/5 of a bushel of tomatoes, then the opportunity cost of 1 bushel of tomatoes is:
the european engine company eec is a multi-national manufacturer of small gasoline and diesel motors. eec has predicted
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
In an English open outcry auction,
If both persons carry an average balance of $3000 on their credit cards for 3 years, how much more money will Edward repay compared with what Jorge owes
Indicate how each of the following factors will change the individual demand curve for aspirin tablets:
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
If you advertise and your rival does not, you will make $ 10 million and your rival will make $ 3 million. If your rival advertises and you do not, you will make $1 million and your rival will make $ 3 million.
All-you-can-eat restaurants allow customers to eat as much as they want for a fixed price. These types of restaurants must make money or they would not remain in business. How can they earn profits when people can always eat more which would increase..
Economists assume that consumers attempt to maximize their utility based upon their preferences, income and price of commodities. do you see any weakness of the above are you aware of any example of irrational behavior by consumers(or yourself )?
The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever, perpetuity) is $425 million. The annual net benefits will depend on the amount of rainfall: $18 million in a “dry” year, $29 million in a “wet” year, and ..
Handy Manufacturing Industry Trade Association recently published the following estimates of Demand and Supply relations for hammers. Calculate the perfectly competitive industry equilibrium price/output combination.
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