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Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms. The benefit of smoking is worth $250 to Bob, but the smoke imposes a $500 cost on Dexter. How might the Coase theorem be used to achieve an efficient outcome in this situation? In your answer, be sure to define the Coase theorem, and the conditions under which the Coase theorem may work.
What should the jackpot be before the expected payoff is worth your $1.00 bet. Assume that the state takes 60% of the jackpot in taxes, that no one else is a winner, and that you are risk -neutral.
How much profit does an unregulated monopolist earn. How much profit would be earned if MC pricing were imposed
Illustrate what effect will each of the subsequent have on the supply of auto tires
Identify at least three such factors that, in your view, should be included in the GDP calculations; then elucidate and illustrate how could they will help to improve the GDP as a tool for measuring the well-being of a nation.
What is the resulting deadweight loss relative to the competitive outcome. Compute the Lerner Index for the monopoly described in the question above.
Where Q is the production and V is the number of employees working 8 hours a day
What other variables should be considered when determining what is reasonable in terms of maintenance expense
Which of the subsequent is directly included in the calculation of the GDP?
Calculate and describe the Nash equilibrium (quantities, price and profits) in the game in which both firms choose their quantities simultaneously.
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Illustrate what would be total incremental investment in accounts receivable and invent theory to support expected increase in sales.
Elucidate with an aid of a diagram , the effect on prices and output if households decide to spend a large share of their income.
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