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Consider 5 farmers located close to a lake. The lake is used by 5 recreational users for swimming. The farmers use fertilizer with marginal benefits MB = 12 - 2x where x is the amount of fertilizer applied. The cost per unit of fertilizer is 4. The fertilizer runoff into the lake reduces the water quality. The marginal damage from fertilizer use through reduced water quality is MD = 0.08 X for each of the recreational users. X is the total amount of fertilizer that all farms combined apply. How high is the Pigovian tax that would implement the efficient solution?
Consider the following information about a firm and answer the questions below: Y = 40L - 2L 2 P = 60 W = 240 FC = 9660
An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required ..
A nation's real GDP was growing at only 2.0% per year over time. Then economic conditions improve in the economy and its sustained growth rate increases to 2.5%
How does world trade affect the production of complex products like smartphones?
Let's tax Jack 80 dollars and Moe 40 dollars. Then let's use those tax revenues to raise Manny's income by 120 dollars. What happens to market demand?
Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short-run effects each of the following events has on the Canadian economy.
Examine the major complexities that would arise under expansion via capital projects in the low-calorie, frozen microwavable food industry. Propose key actions that a company could take in order to prevent or address these complexities.
Describe the determinants of varying levels of income. What factors determine a wages of a person
One of the short term effect of Corona crisis is increased unemployment. What will be its long term effects on the economy of the country?
Assume that the government places a 50 percent tax on widgets. Neither the demand for widgets or supply of widgets is perfectly elastic or inelastic. Draw a graph showing how the tax will affect the market. Where does the incidence of the tax lie? Ex..
Explain why purchasing power parity measures of income levels tend to show smaller differences between poor and rich country
How have Taobao and JD.com evolved their e-commerce strategies to remain competitive in the global marketplace?
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