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Our discussion board topic listed three potential solutions to the overuse of common resources: command and control, cultural norms, and creating property rights. Imagine you are a policy maker in California with the ability to design an intervention to overcome the tragedy of the commons that currently exists with respect to agricultural water use. Choose one of these potential solutions and create a plan to solve this crisis. Describe the merits of your intervention and the difficulties it must overcome to be successful. (Response must be 300 words)
If Starbucks raises its price by 6 percent and McDonald’s experiences a 0.6 percent increase in demand for its coffee, what is the cross-price elasticity of demand?
Linda committed a traffic violation that resulted in an accident. She learns first that the violation will result in a $500 fine; she then learns that she will have to pay another $500 for damage caused in the accident. According to prospect theory,
What would be the total profit of the firm if it sells the entire output at a cost of Rs. 60 per unit.
Assume that raising the marginal income tax rate raises $200B which could be spent on infrastructure projects. Explain how would we measure the cost of the project to determine whether it is worth undertaking.
De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination.
You are the manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. Compute the total revenue, the total cost, and the profit at the..
The relationship between marginal revenue and elasticity is when demand is elastic marginal revenue is positive and when demand is inelastic marginal revenue is negative
An office building and its equipment are insured to $7,100,000. The present annual insurance premium is $0.85 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $180,000. Find the rat..
Find out the optimal prices, the number of tickets sold in each area and the seller's profit given that the seller wants to serve all consumers.
q1. y fk l a k0.4l1.0a calculate the marginal product of labor mplb does this production function exhibit diminishing
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..
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