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Q. In the wake of the energy crisis in California, many electricity generating facilities across the nation are reassessing their projections of future demand and capacity for electricity in their respective markets. As a manager at Florida Power & Light Company, you are in charge of determining the optimal size of two electricity generating facilities. The figure below illustrates the short-run average total cost curves associated with different facility sizes. Demand projections indicate that 6 million kilowatts must be produced at your South Florida facility, and 2 million kilowatts must be produced at your facility in the Panhandle. Determine the optimal facility size (S, M, or L) for these two regions, and indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.
Assume the current rent is also equal Illustrate one would commonly expect for the future.
Suppose that government decides to charge cola consumers a tax. What is incidence of tax that falls on producers.
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Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include:
An industry's marginal abatement cost is MAC=2000-e. regulator controls emissions by selling 500 permits. Though, industries are also given option of paying a fee of $1000 per unit of emissions for which y do not hold a permit. Draw a diagram illu..
Can you reject the null hypothesis that income does not affect quantity demanded? What proportion of total variation in Q is explained by the regression equation?
what is the consumption function b. what is the equation of the AE curve c. calculate equilibrium expenditure
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